Correlation Between Franklin Street and 48242WAC0
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By analyzing existing cross correlation between Franklin Street Properties and KBR INC 475, you can compare the effects of market volatilities on Franklin Street and 48242WAC0 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 48242WAC0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Street and 48242WAC0.
Diversification Opportunities for Franklin Street and 48242WAC0
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and 48242WAC0 is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Street Properties and KBR INC 475 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KBR INC 475 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 48242WAC0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KBR INC 475 has no effect on the direction of Franklin Street i.e., Franklin Street and 48242WAC0 go up and down completely randomly.
Pair Corralation between Franklin Street and 48242WAC0
Considering the 90-day investment horizon Franklin Street Properties is expected to under-perform the 48242WAC0. But the stock apears to be less risky and, when comparing its historical volatility, Franklin Street Properties is 35.8 times less risky than 48242WAC0. The stock trades about -0.01 of its potential returns per unit of risk. The KBR INC 475 is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 8,863 in KBR INC 475 on August 27, 2024 and sell it today you would earn a total of 57.00 from holding KBR INC 475 or generate 0.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 48.59% |
| Values | Daily Returns |
Franklin Street Properties vs. KBR INC 475
Performance |
| Timeline |
| Franklin Street Prop |
| KBR INC 475 |
Franklin Street and 48242WAC0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Street and 48242WAC0
The main advantage of trading using opposite Franklin Street and 48242WAC0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Street position performs unexpectedly, 48242WAC0 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 48242WAC0 will offset losses from the drop in 48242WAC0'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 |
| 48242WAC0 vs. CDW Corp | 48242WAC0 vs. Hooker Furniture | 48242WAC0 vs. Franklin Street Properties | 48242WAC0 vs. FiscalNote Holdings |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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