Correlation Between Franklin Street and Core Scientific,

Can any of the company-specific risk be diversified away by investing in both Franklin Street and Core Scientific, 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 Core Scientific, 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 Core Scientific, Common, you can compare the effects of market volatilities on Franklin Street and Core Scientific, 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 Core Scientific,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Street and Core Scientific,.

Diversification Opportunities for Franklin Street and Core Scientific,

0.09

Correlation Coefficient

Franklin Street  Core Scientific,

Significant diversification

The 3 months correlation between Franklin and Core is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Street Properties and Core Scientific, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core Scientific, Common 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 Core Scientific,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core Scientific, Common has no effect on the direction of Franklin Street i.e., Franklin Street and Core Scientific, go up and down completely randomly.

Pair Corralation between Franklin Street and Core Scientific,

Considering the 90-day investment horizon Franklin Street Properties is expected to generate 0.34 times more return on investment than Core Scientific,. However, Franklin Street Properties is 2.92 times less risky than Core Scientific,. It trades about 0.01 of its potential returns per unit of risk. Core Scientific, Common is currently generating about -0.12 per unit of risk. If you would invest  187.00  in Franklin Street Properties on December 27, 2024 and sell it today you would lose (1.00) from holding Franklin Street Properties or give up 0.53% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Franklin Street Properties  vs.  Core Scientific, Common

Franklin Street Prop

Risk-Adjusted Performance

Very Weak

Over the last 90 days Franklin Street Properties has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Franklin Street is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Core Scientific, Common

Risk-Adjusted Performance

Very Weak

Over the last 90 days Core Scientific, Common has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Franklin Street and Core Scientific,

The main advantage of trading using opposite Franklin Street and Core Scientific, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Street position performs unexpectedly, Core Scientific, 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 Core Scientific, will offset losses from the drop in Core Scientific,'s long position.

The idea behind Franklin Street Properties and Core Scientific, Common pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.