Correlation Between Associated Capital and Franklin BSP
Can any of the company-specific risk be diversified away by investing in both Associated Capital and Franklin BSP 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 Associated Capital and Franklin BSP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Associated Capital Group and Franklin BSP Realty, you can compare the effects of market volatilities on Associated Capital and Franklin BSP 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 Associated Capital with a short position of Franklin BSP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Associated Capital and Franklin BSP.
Diversification Opportunities for Associated Capital and Franklin BSP
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Associated and Franklin is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Associated Capital Group and Franklin BSP Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin BSP Realty and Associated Capital 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 Associated Capital Group are associated (or correlated) with Franklin BSP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin BSP Realty has no effect on the direction of Associated Capital i.e., Associated Capital and Franklin BSP go up and down completely randomly.
Pair Corralation between Associated Capital and Franklin BSP
Allowing for the 90-day total investment horizon Associated Capital Group is expected to generate 1.68 times more return on investment than Franklin BSP. However, Associated Capital is 1.68 times more volatile than Franklin BSP Realty. It trades about 0.06 of its potential returns per unit of risk. Franklin BSP Realty is currently generating about -0.09 per unit of risk. If you would invest 3,428 in Associated Capital Group on August 17, 2025 and sell it today you would earn a total of 188.00 from holding Associated Capital Group or generate 5.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 92.19% |
| Values | Daily Returns |
Associated Capital Group vs. Franklin BSP Realty
Performance |
| Timeline |
| Associated Capital |
| Franklin BSP Realty |
Associated Capital and Franklin BSP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Associated Capital and Franklin BSP
The main advantage of trading using opposite Associated Capital and Franklin BSP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Associated Capital position performs unexpectedly, Franklin BSP 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 BSP will offset losses from the drop in Franklin BSP's long position.The idea behind Associated Capital Group and Franklin BSP Realty 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.| Franklin BSP vs. AG Mortgage Investment | Franklin BSP vs. MFA Financial | Franklin BSP vs. TPG RE Finance | Franklin BSP vs. Sachem Capital Corp |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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