Correlation Between Franklin Universal and Rand Capital
Can any of the company-specific risk be diversified away by investing in both Franklin Universal and Rand 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 Rand 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 Rand Capital Corp, you can compare the effects of market volatilities on Franklin Universal and Rand 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 Rand Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Universal and Rand Capital.
Diversification Opportunities for Franklin Universal and Rand Capital
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Rand is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Universal Closed and Rand Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rand Capital Corp 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 Rand Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rand Capital Corp has no effect on the direction of Franklin Universal i.e., Franklin Universal and Rand Capital go up and down completely randomly.
Pair Corralation between Franklin Universal and Rand Capital
Allowing for the 90-day total investment horizon Franklin Universal Closed is expected to generate 0.21 times more return on investment than Rand Capital. However, Franklin Universal Closed is 4.87 times less risky than Rand Capital. It trades about 0.18 of its potential returns per unit of risk. Rand Capital Corp is currently generating about -0.19 per unit of risk. If you would invest 764.00 in Franklin Universal Closed on July 20, 2025 and sell it today you would earn a total of 46.00 from holding Franklin Universal Closed or generate 6.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Universal Closed vs. Rand Capital Corp
Performance |
| Timeline |
| Franklin Universal Closed |
| Rand Capital Corp |
Franklin Universal and Rand Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Universal and Rand Capital
The main advantage of trading using opposite Franklin Universal and Rand Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Universal position performs unexpectedly, Rand 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 Rand Capital will offset losses from the drop in Rand Capital's long position.The idea behind Franklin Universal Closed and Rand Capital Corp 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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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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