Correlation Between Franklin BSP and Acres Commercial
Can any of the company-specific risk be diversified away by investing in both Franklin BSP and Acres Commercial 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 BSP and Acres Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin BSP Realty and Acres Commercial Realty, you can compare the effects of market volatilities on Franklin BSP and Acres Commercial 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 BSP with a short position of Acres Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin BSP and Acres Commercial.
Diversification Opportunities for Franklin BSP and Acres Commercial
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and Acres is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Franklin BSP Realty and Acres Commercial Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acres Commercial Realty and Franklin BSP 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 BSP Realty are associated (or correlated) with Acres Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acres Commercial Realty has no effect on the direction of Franklin BSP i.e., Franklin BSP and Acres Commercial go up and down completely randomly.
Pair Corralation between Franklin BSP and Acres Commercial
Given the investment horizon of 90 days Franklin BSP Realty is expected to under-perform the Acres Commercial. But the stock apears to be less risky and, when comparing its historical volatility, Franklin BSP Realty is 1.49 times less risky than Acres Commercial. The stock trades about 0.0 of its potential returns per unit of risk. The Acres Commercial Realty is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 1,512 in Acres Commercial Realty on August 28, 2024 and sell it today you would earn a total of 218.00 from holding Acres Commercial Realty or generate 14.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin BSP Realty vs. Acres Commercial Realty
Performance |
| Timeline |
| Franklin BSP Realty |
| Acres Commercial Realty |
Franklin BSP and Acres Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin BSP and Acres Commercial
The main advantage of trading using opposite Franklin BSP and Acres Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin BSP position performs unexpectedly, Acres Commercial 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 Acres Commercial will offset losses from the drop in Acres Commercial's long position.| Franklin BSP vs. AGNC Investment Corp | Franklin BSP vs. Aquagold International | Franklin BSP vs. Morningstar Unconstrained Allocation | Franklin BSP vs. Thrivent High Yield |
| Acres Commercial vs. Blackstone Mortgage Trust | Acres Commercial vs. Omega Healthcare Investors | Acres Commercial vs. Medical Properties Trust |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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