Correlation Between Cousins Properties and Franklin Street
Can any of the company-specific risk be diversified away by investing in both Cousins Properties and Franklin Street 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 Cousins Properties and Franklin Street into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cousins Properties Incorporated and Franklin Street Properties, you can compare the effects of market volatilities on Cousins Properties and Franklin Street 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 Cousins Properties with a short position of Franklin Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cousins Properties and Franklin Street.
Diversification Opportunities for Cousins Properties and Franklin Street
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cousins and Franklin is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Cousins Properties Incorporate and Franklin Street Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Street Prop and Cousins Properties 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 Cousins Properties Incorporated are associated (or correlated) with Franklin Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Street Prop has no effect on the direction of Cousins Properties i.e., Cousins Properties and Franklin Street go up and down completely randomly.
Pair Corralation between Cousins Properties and Franklin Street
Considering the 90-day investment horizon Cousins Properties Incorporated is expected to generate 0.92 times more return on investment than Franklin Street. However, Cousins Properties Incorporated is 1.08 times less risky than Franklin Street. It trades about 0.0 of its potential returns per unit of risk. Franklin Street Properties is currently generating about -0.04 per unit of risk. If you would invest 3,061 in Cousins Properties Incorporated on November 3, 2024 and sell it today you would lose (8.00) from holding Cousins Properties Incorporated or give up 0.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cousins Properties Incorporate vs. Franklin Street Properties
Performance |
| Timeline |
| Cousins Properties |
| Franklin Street Prop |
Cousins Properties and Franklin Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cousins Properties and Franklin Street
The main advantage of trading using opposite Cousins Properties and Franklin Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cousins Properties position performs unexpectedly, Franklin Street 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 Street will offset losses from the drop in Franklin Street's long position.| Cousins Properties vs. Highwoods Properties | Cousins Properties vs. Douglas Emmett | Cousins Properties vs. Equity Commonwealth | Cousins Properties vs. Kilroy Realty Corp |
| Franklin Street vs. Cousins Properties Incorporated | Franklin Street vs. Creative Media Community | Franklin Street vs. Highwoods Properties | Franklin Street vs. Douglas Emmett |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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