Correlation Between Franklin Street and Advanced Health
Can any of the company-specific risk be diversified away by investing in both Franklin Street and Advanced Health 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 Street and Advanced Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Street Properties and Advanced Health Intelligence, you can compare the effects of market volatilities on Franklin Street and Advanced Health 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 Street with a short position of Advanced Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Street and Advanced Health.
Diversification Opportunities for Franklin Street and Advanced Health
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and Advanced is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Street Properties and Advanced Health Intelligence in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Health Inte and Franklin Street 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 Street Properties are associated (or correlated) with Advanced Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Health Inte has no effect on the direction of Franklin Street i.e., Franklin Street and Advanced Health go up and down completely randomly.
Pair Corralation between Franklin Street and Advanced Health
Considering the 90-day investment horizon Franklin Street Properties is expected to under-perform the Advanced Health. But the stock apears to be less risky and, when comparing its historical volatility, Franklin Street Properties is 31.87 times less risky than Advanced Health. The stock trades about -0.01 of its potential returns per unit of risk. The Advanced Health Intelligence is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 5.00 in Advanced Health Intelligence on November 7, 2024 and sell it today you would lose (4.60) from holding Advanced Health Intelligence or give up 92.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.93% |
| Values | Daily Returns |
Franklin Street Properties vs. Advanced Health Intelligence
Performance |
| Timeline |
| Franklin Street Prop |
| Advanced Health Inte |
Franklin Street and Advanced Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Street and Advanced Health
The main advantage of trading using opposite Franklin Street and Advanced Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Street position performs unexpectedly, Advanced Health 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 Advanced Health will offset losses from the drop in Advanced Health's long position.| Franklin Street vs. Cousins Properties Incorporated | Franklin Street vs. Creative Media Community | Franklin Street vs. Highwoods Properties | Franklin Street vs. Douglas Emmett |
| Advanced Health vs. NetSol Technologies | Advanced Health vs. Goosehead Insurance | Advanced Health vs. Datadog | Advanced Health vs. ServiceNow |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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