Correlation Between Franklin Street and Sable Offshore
Can any of the company-specific risk be diversified away by investing in both Franklin Street and Sable Offshore 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 Sable Offshore 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 Sable Offshore Corp, you can compare the effects of market volatilities on Franklin Street and Sable Offshore 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 Sable Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Street and Sable Offshore.
Diversification Opportunities for Franklin Street and Sable Offshore
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Franklin and Sable is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Street Properties and Sable Offshore Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sable Offshore Corp 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 Sable Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sable Offshore Corp has no effect on the direction of Franklin Street i.e., Franklin Street and Sable Offshore go up and down completely randomly.
Pair Corralation between Franklin Street and Sable Offshore
Considering the 90-day investment horizon Franklin Street is expected to generate 15.12 times less return on investment than Sable Offshore. But when comparing it to its historical volatility, Franklin Street Properties is 1.74 times less risky than Sable Offshore. It trades about 0.01 of its potential returns per unit of risk. Sable Offshore Corp is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,079 in Sable Offshore Corp on September 3, 2024 and sell it today you would earn a total of 1,269 from holding Sable Offshore Corp or generate 117.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Street Properties vs. Sable Offshore Corp
Performance |
| Timeline |
| Franklin Street Prop |
| Sable Offshore Corp |
Franklin Street and Sable Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Street and Sable Offshore
The main advantage of trading using opposite Franklin Street and Sable Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Street position performs unexpectedly, Sable Offshore 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 Sable Offshore will offset losses from the drop in Sable Offshore'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 |
| Sable Offshore vs. Dine Brands Global | Sable Offshore vs. RCI Hospitality Holdings | Sable Offshore vs. Sweetgreen | Sable Offshore vs. Dennys Corp |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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