Correlation Between Franklin Universal and Crescent Capital
Can any of the company-specific risk be diversified away by investing in both Franklin Universal and Crescent Capital 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 Universal and Crescent Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Universal Closed and Crescent Capital BDC, you can compare the effects of market volatilities on Franklin Universal and Crescent Capital 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 Universal with a short position of Crescent Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Universal and Crescent Capital.
Diversification Opportunities for Franklin Universal and Crescent Capital
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Crescent is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Universal Closed and Crescent Capital BDC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crescent Capital BDC and Franklin Universal 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 Universal Closed are associated (or correlated) with Crescent Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crescent Capital BDC has no effect on the direction of Franklin Universal i.e., Franklin Universal and Crescent Capital go up and down completely randomly.
Pair Corralation between Franklin Universal and Crescent Capital
Allowing for the 90-day total investment horizon Franklin Universal Closed is expected to generate 0.41 times more return on investment than Crescent Capital. However, Franklin Universal Closed is 2.46 times less risky than Crescent Capital. It trades about 0.11 of its potential returns per unit of risk. Crescent Capital BDC is currently generating about -0.07 per unit of risk. If you would invest 778.00 in Franklin Universal Closed on September 3, 2025 and sell it today you would earn a total of 32.00 from holding Franklin Universal Closed or generate 4.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Universal Closed vs. Crescent Capital BDC
Performance |
| Timeline |
| Franklin Universal Closed |
| Crescent Capital BDC |
Franklin Universal and Crescent Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Universal and Crescent Capital
The main advantage of trading using opposite Franklin Universal and Crescent Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Universal position performs unexpectedly, Crescent Capital 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 Crescent Capital will offset losses from the drop in Crescent Capital's long position.| Franklin Universal vs. ASA Gold and | Franklin Universal vs. BlackRock Energy and | Franklin Universal vs. BlackRock Health Sciences | Franklin Universal vs. GAMCO Natural Resources |
| Crescent Capital vs. Prologic Management Systems | Crescent Capital vs. Gex Management | Crescent Capital vs. Mineral Mountain Mining | Crescent Capital vs. Avidus Management Group |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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