Correlation Between AG Mortgage and Franklin Wireless
Can any of the company-specific risk be diversified away by investing in both AG Mortgage and Franklin Wireless 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 AG Mortgage and Franklin Wireless into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AG Mortgage Investment and Franklin Wireless Corp, you can compare the effects of market volatilities on AG Mortgage and Franklin Wireless 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 AG Mortgage with a short position of Franklin Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of AG Mortgage and Franklin Wireless.
Diversification Opportunities for AG Mortgage and Franklin Wireless
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MITN and Franklin is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding AG Mortgage Investment and Franklin Wireless Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Wireless Corp and AG Mortgage 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 AG Mortgage Investment are associated (or correlated) with Franklin Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Wireless Corp has no effect on the direction of AG Mortgage i.e., AG Mortgage and Franklin Wireless go up and down completely randomly.
Pair Corralation between AG Mortgage and Franklin Wireless
Given the investment horizon of 90 days AG Mortgage Investment is expected to generate 0.08 times more return on investment than Franklin Wireless. However, AG Mortgage Investment is 12.15 times less risky than Franklin Wireless. It trades about 0.09 of its potential returns per unit of risk. Franklin Wireless Corp is currently generating about -0.28 per unit of risk. If you would invest 2,508 in AG Mortgage Investment on September 4, 2025 and sell it today you would earn a total of 7.00 from holding AG Mortgage Investment or generate 0.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AG Mortgage Investment vs. Franklin Wireless Corp
Performance |
| Timeline |
| AG Mortgage Investment |
| Franklin Wireless Corp |
AG Mortgage and Franklin Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AG Mortgage and Franklin Wireless
The main advantage of trading using opposite AG Mortgage and Franklin Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AG Mortgage position performs unexpectedly, Franklin Wireless 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 Franklin Wireless will offset losses from the drop in Franklin Wireless' long position.| AG Mortgage vs. The Carlyle Group | AG Mortgage vs. Stifel Financial | AG Mortgage vs. PGIM Corporate Bond | AG Mortgage vs. Affiliated Managers Group, |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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