Correlation Between Sun Communities and Franklin Wireless
Can any of the company-specific risk be diversified away by investing in both Sun Communities 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 Sun Communities and Franklin Wireless into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sun Communities and Franklin Wireless Corp, you can compare the effects of market volatilities on Sun Communities 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 Sun Communities with a short position of Franklin Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Communities and Franklin Wireless.
Diversification Opportunities for Sun Communities and Franklin Wireless
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sun and Franklin is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Sun Communities 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 Sun Communities 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 Sun Communities 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 Sun Communities i.e., Sun Communities and Franklin Wireless go up and down completely randomly.
Pair Corralation between Sun Communities and Franklin Wireless
Considering the 90-day investment horizon Sun Communities is expected to under-perform the Franklin Wireless. But the stock apears to be less risky and, when comparing its historical volatility, Sun Communities is 1.81 times less risky than Franklin Wireless. The stock trades about -0.01 of its potential returns per unit of risk. The Franklin Wireless Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 405.00 in Franklin Wireless Corp on September 9, 2025 and sell it today you would earn a total of 44.00 from holding Franklin Wireless Corp or generate 10.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sun Communities vs. Franklin Wireless Corp
Performance |
| Timeline |
| Sun Communities |
| Franklin Wireless Corp |
Sun Communities and Franklin Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Communities and Franklin Wireless
The main advantage of trading using opposite Sun Communities and Franklin Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Communities 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.| Sun Communities vs. Clipper Realty | Sun Communities vs. UDR Inc | Sun Communities vs. UMH Properties | Sun Communities vs. American Homes 4 |
| Franklin Wireless vs. Cambium Networks Corp | Franklin Wireless vs. Airgain | Franklin Wireless vs. Amplitech Group | Franklin Wireless vs. Optical Cable |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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