Correlation Between Franklin Real and Brown Advisory
Can any of the company-specific risk be diversified away by investing in both Franklin Real and Brown Advisory 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 Real and Brown Advisory into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Real Estate and Brown Advisory Growth, you can compare the effects of market volatilities on Franklin Real and Brown Advisory 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 Real with a short position of Brown Advisory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Real and Brown Advisory.
Diversification Opportunities for Franklin Real and Brown Advisory
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Franklin and Brown is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Real Estate and Brown Advisory Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brown Advisory Growth and Franklin Real 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 Real Estate are associated (or correlated) with Brown Advisory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brown Advisory Growth has no effect on the direction of Franklin Real i.e., Franklin Real and Brown Advisory go up and down completely randomly.
Pair Corralation between Franklin Real and Brown Advisory
Assuming the 90 days horizon Franklin Real Estate is expected to generate 0.37 times more return on investment than Brown Advisory. However, Franklin Real Estate is 2.71 times less risky than Brown Advisory. It trades about 0.08 of its potential returns per unit of risk. Brown Advisory Growth is currently generating about -0.02 per unit of risk. If you would invest 1,478 in Franklin Real Estate on September 19, 2024 and sell it today you would earn a total of 408.00 from holding Franklin Real Estate or generate 27.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.66% |
| Values | Daily Returns |
Franklin Real Estate vs. Brown Advisory Growth
Performance |
| Timeline |
| Franklin Real Estate |
| Brown Advisory Growth |
Franklin Real and Brown Advisory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Real and Brown Advisory
The main advantage of trading using opposite Franklin Real and Brown Advisory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Real position performs unexpectedly, Brown Advisory 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 Brown Advisory will offset losses from the drop in Brown Advisory's long position.| Franklin Real vs. Realty Income | Franklin Real vs. Dynex Capital | Franklin Real vs. First Industrial Realty | Franklin Real vs. Healthcare Realty Trust |
| Brown Advisory vs. Simt Real Estate | Brown Advisory vs. Jhancock Real Estate | Brown Advisory vs. Franklin Real Estate | Brown Advisory vs. Nuveen Real Estate |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| 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 | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets |