Correlation Between Concord New and Franklin Street
Can any of the company-specific risk be diversified away by investing in both Concord New 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 Concord New and Franklin Street into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Concord New Energy and Franklin Street Properties, you can compare the effects of market volatilities on Concord New 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 Concord New with a short position of Franklin Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concord New and Franklin Street.
Diversification Opportunities for Concord New and Franklin Street
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Concord and Franklin is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Concord New Energy 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 Concord New 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 Concord New Energy 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 Concord New i.e., Concord New and Franklin Street go up and down completely randomly.
Pair Corralation between Concord New and Franklin Street
Assuming the 90 days horizon Concord New Energy is expected to generate 1.87 times more return on investment than Franklin Street. However, Concord New is 1.87 times more volatile than Franklin Street Properties. It trades about 0.02 of its potential returns per unit of risk. Franklin Street Properties is currently generating about -0.01 per unit of risk. If you would invest 7.22 in Concord New Energy on October 22, 2024 and sell it today you would lose (0.22) from holding Concord New Energy or give up 3.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 76.32% |
| Values | Daily Returns |
Concord New Energy vs. Franklin Street Properties
Performance |
| Timeline |
| Concord New Energy |
| Franklin Street Prop |
Concord New and Franklin Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concord New and Franklin Street
The main advantage of trading using opposite Concord New and Franklin Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concord New 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.| Concord New vs. Freedom Holding Corp | Concord New vs. Futuretech II Acquisition | Concord New vs. Suburban Propane Partners | Concord New vs. Vistra Energy 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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