Correlation Between Franklin Street and Five Point
Can any of the company-specific risk be diversified away by investing in both Franklin Street and Five Point 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 Five Point 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 Five Point Holdings, you can compare the effects of market volatilities on Franklin Street and Five Point 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 Five Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Street and Five Point.
Diversification Opportunities for Franklin Street and Five Point
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Franklin and Five is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Street Properties and Five Point Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Five Point Holdings 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 Five Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Five Point Holdings has no effect on the direction of Franklin Street i.e., Franklin Street and Five Point go up and down completely randomly.
Pair Corralation between Franklin Street and Five Point
Considering the 90-day investment horizon Franklin Street is expected to generate 6.19 times less return on investment than Five Point. But when comparing it to its historical volatility, Franklin Street Properties is 1.1 times less risky than Five Point. It trades about 0.01 of its potential returns per unit of risk. Five Point Holdings is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 306.00 in Five Point Holdings on June 10, 2025 and sell it today you would earn a total of 283.00 from holding Five Point Holdings or generate 92.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Street Properties vs. Five Point Holdings
Performance |
| Timeline |
| Franklin Street Prop |
| Five Point Holdings |
Franklin Street and Five Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Street and Five Point
The main advantage of trading using opposite Franklin Street and Five Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Street position performs unexpectedly, Five Point 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 Five Point will offset losses from the drop in Five Point's long position.| Franklin Street vs. COPT Defense Properties | Franklin Street vs. Cousins Properties Incorporated | Franklin Street vs. City Office | Franklin Street vs. Creative Media Community |
| Five Point vs. American Realty Investors | Five Point vs. AMREP | Five Point vs. Clipper Realty | Five Point vs. Forestar Group |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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