Correlation Between FrontView REIT, and Tung Ho

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

By analyzing existing cross correlation between FrontView REIT, and Tung Ho Textile, you can compare the effects of market volatilities on FrontView REIT, and Tung Ho 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 Tung Ho. Check out your portfolio center. Please also check ongoing floating volatility patterns of FrontView REIT, and Tung Ho.

Diversification Opportunities for FrontView REIT, and Tung Ho

0.82

Correlation Coefficient

FrontView REIT,  Tung Ho

Very poor diversification

The 3 months correlation between FrontView and Tung is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and Tung Ho Textile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tung Ho Textile 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 Tung Ho. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tung Ho Textile has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and Tung Ho go up and down completely randomly.

Pair Corralation between FrontView REIT, and Tung Ho

Considering the 90-day investment horizon FrontView REIT, is expected to under-perform the Tung Ho. In addition to that, FrontView REIT, is 1.48 times more volatile than Tung Ho Textile. It trades about -0.21 of its total potential returns per unit of risk. Tung Ho Textile is currently generating about -0.12 per unit of volatility. If you would invest  2,470  in Tung Ho Textile on December 29, 2024 and sell it today you would lose (265.00) from holding Tung Ho Textile or give up 10.73% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	93.44%
Values	Daily Returns

FrontView REIT,  vs.  Tung Ho Textile

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 conflicting 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.

Tung Ho Textile

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tung Ho Textile has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with FrontView REIT, and Tung Ho

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

The idea behind FrontView REIT, and Tung Ho Textile 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.