Correlation Between InTest and Franklin Street
Can any of the company-specific risk be diversified away by investing in both InTest 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 InTest and Franklin Street into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between inTest and Franklin Street Properties, you can compare the effects of market volatilities on InTest 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 InTest with a short position of Franklin Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of InTest and Franklin Street.
Diversification Opportunities for InTest and Franklin Street
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between InTest and Franklin is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding inTest 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 InTest 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 inTest 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 InTest i.e., InTest and Franklin Street go up and down completely randomly.
Pair Corralation between InTest and Franklin Street
Given the investment horizon of 90 days inTest is expected to generate 1.5 times more return on investment than Franklin Street. However, InTest is 1.5 times more volatile than Franklin Street Properties. It trades about 0.08 of its potential returns per unit of risk. Franklin Street Properties is currently generating about -0.03 per unit of risk. If you would invest 631.00 in inTest on May 31, 2025 and sell it today you would earn a total of 87.00 from holding inTest or generate 13.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
inTest vs. Franklin Street Properties
Performance |
| Timeline |
| inTest |
| Franklin Street Prop |
InTest and Franklin Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InTest and Franklin Street
The main advantage of trading using opposite InTest and Franklin Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InTest 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.| InTest vs. Axcelis Technologies | InTest vs. Lam Research Corp | InTest vs. Photronics | InTest vs. indie Semiconductor |
| Franklin Street vs. Vornado Realty Trust | Franklin Street vs. Highwoods Properties | Franklin Street vs. Piedmont Office Realty |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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