Correlation Between FrontView REIT, and Booking Holdings

Can any of the company-specific risk be diversified away by investing in both FrontView REIT, and Booking Holdings 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 FrontView REIT, and Booking Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between FrontView REIT, and Booking Holdings, you can compare the effects of market volatilities on FrontView REIT, and Booking Holdings 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 FrontView REIT, with a short position of Booking Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of FrontView REIT, and Booking Holdings.

Diversification Opportunities for FrontView REIT, and Booking Holdings

0.21

Correlation Coefficient

FrontView REIT,  Booking Holdings

Modest diversification

The 3 months correlation between FrontView and Booking is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and Booking Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Booking Holdings and FrontView REIT, 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 FrontView REIT, are associated (or correlated) with Booking Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Booking Holdings has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and Booking Holdings go up and down completely randomly.

Pair Corralation between FrontView REIT, and Booking Holdings

Considering the 90-day investment horizon FrontView REIT, is expected to under-perform the Booking Holdings. But the stock apears to be less risky and, when comparing its historical volatility, FrontView REIT, is 8.36 times less risky than Booking Holdings. The stock trades about -0.2 of its potential returns per unit of risk. The Booking Holdings is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  500,421  in Booking Holdings on December 28, 2024 and sell it today you would lose (23,309) from holding Booking Holdings or give up 4.66% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.24%
Values	Daily Returns

FrontView REIT,  vs.  Booking Holdings

FrontView REIT,

Risk-Adjusted Performance

Very Weak

Over the last 90 days FrontView REIT, has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Booking Holdings

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Booking Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Booking Holdings unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with FrontView REIT, and Booking Holdings

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

The idea behind FrontView REIT, and Booking Holdings 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.