Correlation Between Franklin Street and Wheeler Real
Can any of the company-specific risk be diversified away by investing in both Franklin Street and Wheeler Real 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 Wheeler Real 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 Wheeler Real Estate, you can compare the effects of market volatilities on Franklin Street and Wheeler Real 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 Wheeler Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Street and Wheeler Real.
Diversification Opportunities for Franklin Street and Wheeler Real
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and Wheeler is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Street Properties and Wheeler Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wheeler Real Estate 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 Wheeler Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wheeler Real Estate has no effect on the direction of Franklin Street i.e., Franklin Street and Wheeler Real go up and down completely randomly.
Pair Corralation between Franklin Street and Wheeler Real
Considering the 90-day investment horizon Franklin Street Properties is expected to generate 0.82 times more return on investment than Wheeler Real. However, Franklin Street Properties is 1.21 times less risky than Wheeler Real. It trades about 0.11 of its potential returns per unit of risk. Wheeler Real Estate is currently generating about -0.89 per unit of risk. If you would invest 180.00 in Franklin Street Properties on August 27, 2024 and sell it today you would earn a total of 14.00 from holding Franklin Street Properties or generate 7.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Street Properties vs. Wheeler Real Estate
Performance |
| Timeline |
| Franklin Street Prop |
| Wheeler Real Estate |
Franklin Street and Wheeler Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Street and Wheeler Real
The main advantage of trading using opposite Franklin Street and Wheeler Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Street position performs unexpectedly, Wheeler Real 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 Wheeler Real will offset losses from the drop in Wheeler Real'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 |
| Wheeler Real vs. CBL Associates Properties | Wheeler Real vs. Cedar Realty Trust | Wheeler Real vs. Macerich Company | Wheeler Real vs. Simon Property Group |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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