Correlation Between SL Green and Franklin Street
Can any of the company-specific risk be diversified away by investing in both SL Green 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 SL Green and Franklin Street 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 Street Properties, you can compare the effects of market volatilities on SL Green 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 SL Green with a short position of Franklin Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of SL Green and Franklin Street.
Diversification Opportunities for SL Green and Franklin Street
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SLG and Franklin is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding SL Green Realty 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 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 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 SL Green i.e., SL Green and Franklin Street go up and down completely randomly.
Pair Corralation between SL Green and Franklin Street
Considering the 90-day investment horizon SL Green Realty is expected to generate 0.79 times more return on investment than Franklin Street. However, SL Green Realty is 1.26 times less risky than Franklin Street. It trades about -0.03 of its potential returns per unit of risk. Franklin Street Properties is currently generating about -0.02 per unit of risk. If you would invest 6,325 in SL Green Realty on May 27, 2025 and sell it today you would lose (709.00) from holding SL Green Realty or give up 11.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SL Green Realty vs. Franklin Street Properties
Performance |
| Timeline |
| SL Green Realty |
| Franklin Street Prop |
SL Green and Franklin Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SL Green and Franklin Street
The main advantage of trading using opposite SL Green and Franklin Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SL Green 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.| SL Green vs. Boston Properties | SL Green vs. Douglas Emmett | SL Green vs. Kilroy Realty Corp | SL Green vs. Alexandria Real Estate |
| Franklin Street vs. Douglas Emmett | Franklin Street vs. Alexandria Real Estate | Franklin Street vs. Vornado Realty Trust | Franklin Street vs. Highwoods Properties |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |