Correlation Between Franklin Credit and Umpqua Holdings
Can any of the company-specific risk be diversified away by investing in both Franklin Credit and Umpqua Holdings at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Franklin Credit and Umpqua Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Credit Management and Umpqua Holdings, you can compare the effects of market volatilities on Franklin Credit and Umpqua Holdings and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Franklin Credit with a short position of Umpqua Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Credit and Umpqua Holdings.
Diversification Opportunities for Franklin Credit and Umpqua Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Umpqua is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Credit Management and Umpqua Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Umpqua Holdings and Franklin Credit is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Franklin Credit Management are associated (or correlated) with Umpqua Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Umpqua Holdings has no effect on the direction of Franklin Credit i.e., Franklin Credit and Umpqua Holdings go up and down completely randomly.
Pair Corralation between Franklin Credit and Umpqua Holdings
If you would invest 11.00 in Franklin Credit Management on December 28, 2024 and sell it today you would lose (1.00) from holding Franklin Credit Management or give up 9.09% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Franklin Credit Management vs. Umpqua Holdings
Performance |
Timeline |
Franklin Credit Mana |
Umpqua Holdings |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Franklin Credit and Umpqua Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Franklin Credit and Umpqua Holdings
The main advantage of trading using opposite Franklin Credit and Umpqua Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Credit position performs unexpectedly, Umpqua Holdings can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Umpqua Holdings will offset losses from the drop in Umpqua Holdings' long position.Franklin Credit vs. Global Healthcare REIT | Franklin Credit vs. Freedom Bank of | Franklin Credit vs. Hinto Energy | Franklin Credit vs. Ensurge |
Umpqua Holdings vs. East Africa Metals | Umpqua Holdings vs. MYT Netherlands Parent | Umpqua Holdings vs. Park Electrochemical | Umpqua Holdings vs. EastGroup Properties |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |