Correlation Between Franchise and Presidio Property
Can any of the company-specific risk be diversified away by investing in both Franchise and Presidio Property 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 Franchise and Presidio Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franchise Group and Presidio Property Trust, you can compare the effects of market volatilities on Franchise and Presidio Property 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 Franchise with a short position of Presidio Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franchise and Presidio Property.
Diversification Opportunities for Franchise and Presidio Property
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Franchise and Presidio is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Franchise Group and Presidio Property Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Presidio Property Trust and Franchise 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 Franchise Group are associated (or correlated) with Presidio Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Presidio Property Trust has no effect on the direction of Franchise i.e., Franchise and Presidio Property go up and down completely randomly.
Pair Corralation between Franchise and Presidio Property
If you would invest 2,493 in Franchise Group on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Franchise Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Franchise Group vs. Presidio Property Trust
Performance |
| Timeline |
| Franchise Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Presidio Property Trust |
Franchise and Presidio Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franchise and Presidio Property
The main advantage of trading using opposite Franchise and Presidio Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franchise position performs unexpectedly, Presidio Property 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 Presidio Property will offset losses from the drop in Presidio Property's long position.| Franchise vs. Maiden Holdings | Franchise vs. Nasdaq Inc | Franchise vs. Sun Life Financial | Franchise vs. Sabra Healthcare REIT |
| Presidio Property vs. FAT Brands | Presidio Property vs. Atlanticus Holdings Corp | Presidio Property vs. Presidio Property 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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