Correlation Between SL Green and Franklin Wireless
Can any of the company-specific risk be diversified away by investing in both SL Green and Franklin Wireless 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 SL Green and Franklin Wireless into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SL Green Realty and Franklin Wireless Corp, you can compare the effects of market volatilities on SL Green and Franklin Wireless 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 SL Green with a short position of Franklin Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of SL Green and Franklin Wireless.
Diversification Opportunities for SL Green and Franklin Wireless
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SLG and Franklin is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding SL Green Realty and Franklin Wireless Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Wireless Corp and SL Green 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 SL Green Realty are associated (or correlated) with Franklin Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Wireless Corp has no effect on the direction of SL Green i.e., SL Green and Franklin Wireless go up and down completely randomly.
Pair Corralation between SL Green and Franklin Wireless
Considering the 90-day investment horizon SL Green Realty is expected to under-perform the Franklin Wireless. In addition to that, SL Green is 1.04 times more volatile than Franklin Wireless Corp. It trades about -0.12 of its total potential returns per unit of risk. Franklin Wireless Corp is currently generating about -0.02 per unit of volatility. If you would invest 439.00 in Franklin Wireless Corp on September 13, 2024 and sell it today you would lose (3.00) from holding Franklin Wireless Corp or give up 0.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SL Green Realty vs. Franklin Wireless Corp
Performance |
| Timeline |
| SL Green Realty |
| Franklin Wireless Corp |
SL Green and Franklin Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SL Green and Franklin Wireless
The main advantage of trading using opposite SL Green and Franklin Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SL Green position performs unexpectedly, Franklin Wireless 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 Wireless will offset losses from the drop in Franklin Wireless' long position.| SL Green vs. Boston Properties | SL Green vs. Douglas Emmett | SL Green vs. Kilroy Realty Corp | SL Green vs. Alexandria Real Estate |
| Franklin Wireless vs. Passage Bio | Franklin Wireless vs. Black Diamond Therapeutics | Franklin Wireless vs. Alector | Franklin Wireless vs. Century Therapeutics |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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