Correlation Between FrontView REIT, and Shinkong Textile

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Can any of the company-specific risk be diversified away by investing in both FrontView REIT, and Shinkong Textile 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 Shinkong Textile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FrontView REIT, and Shinkong Textile Co, you can compare the effects of market volatilities on FrontView REIT, and Shinkong Textile 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 Shinkong Textile. Check out your portfolio center. Please also check ongoing floating volatility patterns of FrontView REIT, and Shinkong Textile.

Diversification Opportunities for FrontView REIT, and Shinkong Textile

FrontViewShinkongDiversified AwayFrontViewShinkongDiversified Away100%
-0.28
  Correlation Coefficient

Very good diversification

The 3 months correlation between FrontView and Shinkong is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and Shinkong Textile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinkong 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 Shinkong Textile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinkong Textile has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and Shinkong Textile go up and down completely randomly.

Pair Corralation between FrontView REIT, and Shinkong Textile

Considering the 90-day investment horizon FrontView REIT, is expected to generate 1.28 times more return on investment than Shinkong Textile. However, FrontView REIT, is 1.28 times more volatile than Shinkong Textile Co. It trades about -0.04 of its potential returns per unit of risk. Shinkong Textile Co is currently generating about -0.12 per unit of risk. If you would invest  1,900  in FrontView REIT, on September 23, 2024 and sell it today you would lose (77.00) from holding FrontView REIT, or give up 4.05% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy90.77%
ValuesDaily Returns

FrontView REIT,  vs.  Shinkong Textile Co

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -505
JavaScript chart by amCharts 3.21.15FVR 1419
       Timeline  
FrontView REIT, 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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 relatively invariable basic indicators, FrontView REIT, is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec1818.51919.5
Shinkong Textile 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Shinkong Textile Co 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.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec444546474849

FrontView REIT, and Shinkong Textile Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-2.35-1.78-1.21-0.64-0.06830.471.041.612.182.75 0.050.100.150.200.250.30
JavaScript chart by amCharts 3.21.15FVR 1419
       Returns  

Pair Trading with FrontView REIT, and Shinkong Textile

The main advantage of trading using opposite FrontView REIT, and Shinkong Textile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FrontView REIT, position performs unexpectedly, Shinkong Textile 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 Shinkong Textile will offset losses from the drop in Shinkong Textile's long position.
The idea behind FrontView REIT, and Shinkong Textile Co 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.

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