Correlation Between Franklin Wireless and Centene

Can any of the company-specific risk be diversified away by investing in both Franklin Wireless and Centene 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 Wireless and Centene into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Franklin Wireless Corp and Centene 4625 percent, you can compare the effects of market volatilities on Franklin Wireless and Centene 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 Wireless with a short position of Centene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Wireless and Centene.

Diversification Opportunities for Franklin Wireless and Centene

-0.46

Correlation Coefficient

Franklin Wireless  Centene

Very good diversification

The 3 months correlation between Franklin and Centene is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Wireless Corp and Centene 4625 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centene 4625 percent and Franklin Wireless 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 Wireless Corp are associated (or correlated) with Centene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centene 4625 percent has no effect on the direction of Franklin Wireless i.e., Franklin Wireless and Centene go up and down completely randomly.

Pair Corralation between Franklin Wireless and Centene

Given the investment horizon of 90 days Franklin Wireless Corp is expected to generate 5.16 times more return on investment than Centene. However, Franklin Wireless is 5.16 times more volatile than Centene 4625 percent. It trades about 0.15 of its potential returns per unit of risk. Centene 4625 percent is currently generating about -0.11 per unit of risk. If you would invest  419.00  in Franklin Wireless Corp on October 26, 2024 and sell it today you would earn a total of  80.60  from holding Franklin Wireless Corp or generate 19.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.33%
Values	Daily Returns

Franklin Wireless Corp  vs.  Centene 4625 percent

Franklin Wireless Corp

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Franklin Wireless Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating basic indicators, Franklin Wireless disclosed solid returns over the last few months and may actually be approaching a breakup point.

Centene 4625 percent

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Centene 4625 percent has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Centene is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Franklin Wireless and Centene

The main advantage of trading using opposite Franklin Wireless and Centene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Wireless position performs unexpectedly, Centene 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 Centene will offset losses from the drop in Centene's long position.

The idea behind Franklin Wireless Corp and Centene 4625 percent pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.