Correlation Between Pheton Holdings and Franklin Wireless
Can any of the company-specific risk be diversified away by investing in both Pheton Holdings 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 Pheton Holdings and Franklin Wireless into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pheton Holdings Ltd and Franklin Wireless Corp, you can compare the effects of market volatilities on Pheton Holdings 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 Pheton Holdings with a short position of Franklin Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pheton Holdings and Franklin Wireless.
Diversification Opportunities for Pheton Holdings and Franklin Wireless
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pheton and Franklin is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Pheton Holdings Ltd 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 Pheton Holdings 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 Pheton Holdings Ltd 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 Pheton Holdings i.e., Pheton Holdings and Franklin Wireless go up and down completely randomly.
Pair Corralation between Pheton Holdings and Franklin Wireless
Given the investment horizon of 90 days Pheton Holdings Ltd is expected to under-perform the Franklin Wireless. In addition to that, Pheton Holdings is 6.65 times more volatile than Franklin Wireless Corp. It trades about -0.14 of its total potential returns per unit of risk. Franklin Wireless Corp is currently generating about 0.17 per unit of volatility. If you would invest 398.00 in Franklin Wireless Corp on July 20, 2025 and sell it today you would earn a total of 101.00 from holding Franklin Wireless Corp or generate 25.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pheton Holdings Ltd vs. Franklin Wireless Corp
Performance |
| Timeline |
| Pheton Holdings |
| Franklin Wireless Corp |
Pheton Holdings and Franklin Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pheton Holdings and Franklin Wireless
The main advantage of trading using opposite Pheton Holdings and Franklin Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pheton Holdings 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.| Pheton Holdings vs. SBM Offshore NV | Pheton Holdings vs. Mitsui Chemicals ADR | Pheton Holdings vs. Zhibao Technology Class | Pheton Holdings vs. Casio Computer Co |
| Franklin Wireless vs. BeWhere Holdings | Franklin Wireless vs. Collplant Biotechnologies | Franklin Wireless vs. Crexendo | Franklin Wireless vs. Electronic Systems Technology |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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