Correlation Between Franklin Resources and Omnia Wellness

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Franklin Resources and Omnia Wellness 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 Resources and Omnia Wellness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Resources and Omnia Wellness, you can compare the effects of market volatilities on Franklin Resources and Omnia Wellness 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 Resources with a short position of Omnia Wellness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Resources and Omnia Wellness.

Diversification Opportunities for Franklin Resources and Omnia Wellness

-0.69
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Franklin and Omnia is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Resources and Omnia Wellness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omnia Wellness and Franklin Resources 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 Resources are associated (or correlated) with Omnia Wellness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omnia Wellness has no effect on the direction of Franklin Resources i.e., Franklin Resources and Omnia Wellness go up and down completely randomly.

Pair Corralation between Franklin Resources and Omnia Wellness

Considering the 90-day investment horizon Franklin Resources is expected to generate 8.24 times less return on investment than Omnia Wellness. But when comparing it to its historical volatility, Franklin Resources is 7.2 times less risky than Omnia Wellness. It trades about 0.04 of its potential returns per unit of risk. Omnia Wellness is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  300.00  in Omnia Wellness on May 17, 2022 and sell it today you would lose (286.00)  from holding Omnia Wellness or give up 95.33% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy99.8%
ValuesDaily Returns

Franklin Resources  vs.  Omnia Wellness

 Performance (%) 
       Timeline  
Franklin Resources 
Franklin Performance
7 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Franklin Resources are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite sluggish technical and fundamental indicators, Franklin Resources disclosed solid returns over the last few months and may actually be approaching a breakup point.

Franklin Price Channel

Omnia Wellness 
Omnia Performance
6 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Omnia Wellness are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Omnia Wellness reported solid returns over the last few months and may actually be approaching a breakup point.

Omnia Price Channel

Franklin Resources and Omnia Wellness Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Franklin Resources and Omnia Wellness

The main advantage of trading using opposite Franklin Resources and Omnia Wellness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Resources position performs unexpectedly, Omnia Wellness 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 Omnia Wellness will offset losses from the drop in Omnia Wellness' long position.

Franklin Resources

Pair trading matchups for Franklin Resources

The idea behind Franklin Resources and Omnia Wellness 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.

Omnia Wellness

Pair trading matchups for Omnia Wellness

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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

Other Complementary Tools

Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Go
Stock Screener
Find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Go
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Shere Portfolio
Track or share privately all of your investments from the convenience of any device
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go