Correlation Between NH Foods and Franklin Street
Can any of the company-specific risk be diversified away by investing in both NH Foods and Franklin Street 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 NH Foods and Franklin Street into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NH Foods Ltd and Franklin Street Properties, you can compare the effects of market volatilities on NH Foods and Franklin Street 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 NH Foods with a short position of Franklin Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH Foods and Franklin Street.
Diversification Opportunities for NH Foods and Franklin Street
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NIPMY and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NH Foods Ltd and Franklin Street Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Street Prop and NH Foods 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 NH Foods Ltd are associated (or correlated) with Franklin Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Street Prop has no effect on the direction of NH Foods i.e., NH Foods and Franklin Street go up and down completely randomly.
Pair Corralation between NH Foods and Franklin Street
If you would invest 1,700 in NH Foods Ltd on September 3, 2024 and sell it today you would earn a total of 0.00 from holding NH Foods Ltd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NH Foods Ltd vs. Franklin Street Properties
Performance |
| Timeline |
| NH Foods |
| Franklin Street Prop |
NH Foods and Franklin Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH Foods and Franklin Street
The main advantage of trading using opposite NH Foods and Franklin Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH Foods position performs unexpectedly, Franklin Street 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 Franklin Street will offset losses from the drop in Franklin Street's long position.| NH Foods vs. Kellanova | NH Foods vs. Lancaster Colony | NH Foods vs. The A2 Milk | NH Foods vs. Altavoz Entertainment |
| Franklin Street vs. Equity Commonwealth | Franklin Street vs. Cousins Properties Incorporated | Franklin Street vs. Creative Media Community | Franklin Street vs. Highwoods Properties |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |