Correlation Between Corporate Office and Franklin Street
Can any of the company-specific risk be diversified away by investing in both Corporate Office 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 Corporate Office and Franklin Street into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corporate Office Properties and Franklin Street Properties, you can compare the effects of market volatilities on Corporate Office 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 Corporate Office with a short position of Franklin Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corporate Office and Franklin Street.
Diversification Opportunities for Corporate Office and Franklin Street
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Corporate and Franklin is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Corporate Office Properties 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 Corporate Office 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 Corporate Office Properties 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 Corporate Office i.e., Corporate Office and Franklin Street go up and down completely randomly.
Pair Corralation between Corporate Office and Franklin Street
If you would invest 2,592 in Corporate Office Properties on August 26, 2024 and sell it today you would earn a total of 0.00 from holding Corporate Office Properties or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
Corporate Office Properties vs. Franklin Street Properties
Performance |
| Timeline |
| Corporate Office Pro |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Franklin Street Prop |
Corporate Office and Franklin Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corporate Office and Franklin Street
The main advantage of trading using opposite Corporate Office and Franklin Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corporate Office 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.| Corporate Office vs. Highwoods Properties | Corporate Office vs. Piedmont Office Realty | Corporate Office vs. Douglas Emmett | Corporate Office vs. Kilroy Realty Corp |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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