Correlation Between Franklin Street and Slate Office
Can any of the company-specific risk be diversified away by investing in both Franklin Street and Slate Office 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 Slate Office 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 Slate Office REIT, you can compare the effects of market volatilities on Franklin Street and Slate Office 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 Slate Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Street and Slate Office.
Diversification Opportunities for Franklin Street and Slate Office
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and Slate is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Street Properties and Slate Office REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Slate Office REIT 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 Slate Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Slate Office REIT has no effect on the direction of Franklin Street i.e., Franklin Street and Slate Office go up and down completely randomly.
Pair Corralation between Franklin Street and Slate Office
Considering the 90-day investment horizon Franklin Street Properties is expected to generate 0.48 times more return on investment than Slate Office. However, Franklin Street Properties is 2.07 times less risky than Slate Office. It trades about 0.01 of its potential returns per unit of risk. Slate Office REIT is currently generating about -0.25 per unit of risk. If you would invest 192.00 in Franklin Street Properties on September 2, 2024 and sell it today you would lose (1.00) from holding Franklin Street Properties or give up 0.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Franklin Street Properties vs. Slate Office REIT
Performance |
| Timeline |
| Franklin Street Prop |
| Slate Office REIT |
Franklin Street and Slate Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Street and Slate Office
The main advantage of trading using opposite Franklin Street and Slate Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Street position performs unexpectedly, Slate Office 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 Slate Office will offset losses from the drop in Slate Office's long position.| Franklin Street vs. Equity Commonwealth | Franklin Street vs. Cousins Properties Incorporated | Franklin Street vs. Creative Media Community | Franklin Street vs. Highwoods Properties |
| Slate Office vs. Franklin Street Properties | Slate Office vs. Douglas Emmett | Slate Office vs. Highwoods Properties | Slate Office vs. Brandywine Realty 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |