Correlation Between Franklin Street and CAPITAL
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By analyzing existing cross correlation between Franklin Street Properties and CAPITAL ONE FINANCIAL, you can compare the effects of market volatilities on Franklin Street and CAPITAL 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 CAPITAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Street and CAPITAL.
Diversification Opportunities for Franklin Street and CAPITAL
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and CAPITAL is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Street Properties and CAPITAL ONE FINANCIAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAPITAL ONE FINANCIAL 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 CAPITAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAPITAL ONE FINANCIAL has no effect on the direction of Franklin Street i.e., Franklin Street and CAPITAL go up and down completely randomly.
Pair Corralation between Franklin Street and CAPITAL
Considering the 90-day investment horizon Franklin Street Properties is expected to under-perform the CAPITAL. In addition to that, Franklin Street is 6.37 times more volatile than CAPITAL ONE FINANCIAL. It trades about -0.01 of its total potential returns per unit of risk. CAPITAL ONE FINANCIAL is currently generating about -0.01 per unit of volatility. If you would invest 9,552 in CAPITAL ONE FINANCIAL on September 3, 2024 and sell it today you would lose (272.00) from holding CAPITAL ONE FINANCIAL or give up 2.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Franklin Street Properties vs. CAPITAL ONE FINANCIAL
Performance |
| Timeline |
| Franklin Street Prop |
| CAPITAL ONE FINANCIAL |
Franklin Street and CAPITAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Street and CAPITAL
The main advantage of trading using opposite Franklin Street and CAPITAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Street position performs unexpectedly, CAPITAL 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 CAPITAL will offset losses from the drop in CAPITAL'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 |
| CAPITAL vs. BJs Restaurants | CAPITAL vs. AMCON Distributing | CAPITAL vs. Shake Shack | CAPITAL vs. Chipotle Mexican Grill |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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