Correlation Between FrontView REIT, and MiraeAsset TIGER

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

By analyzing existing cross correlation between FrontView REIT, and MiraeAsset TIGER NIKKEI225, you can compare the effects of market volatilities on FrontView REIT, and MiraeAsset TIGER 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 MiraeAsset TIGER. Check out your portfolio center. Please also check ongoing floating volatility patterns of FrontView REIT, and MiraeAsset TIGER.

Diversification Opportunities for FrontView REIT, and MiraeAsset TIGER

-0.21

Correlation Coefficient

FrontView REIT,  MiraeAsset TIGER

Very good diversification

The 3 months correlation between FrontView and MiraeAsset is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and MiraeAsset TIGER NIKKEI225 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MiraeAsset TIGER NIK 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 MiraeAsset TIGER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MiraeAsset TIGER NIK has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and MiraeAsset TIGER go up and down completely randomly.

Pair Corralation between FrontView REIT, and MiraeAsset TIGER

Considering the 90-day investment horizon FrontView REIT, is expected to under-perform the MiraeAsset TIGER. In addition to that, FrontView REIT, is 2.21 times more volatile than MiraeAsset TIGER NIKKEI225. It trades about -0.4 of its total potential returns per unit of risk. MiraeAsset TIGER NIKKEI225 is currently generating about -0.04 per unit of volatility. If you would invest  2,198,545  in MiraeAsset TIGER NIKKEI225 on October 15, 2024 and sell it today you would lose (20,545) from holding MiraeAsset TIGER NIKKEI225 or give up 0.93% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

FrontView REIT,  vs.  MiraeAsset TIGER NIKKEI225

FrontView REIT,

Risk-Adjusted Performance

0 of 100

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 February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

MiraeAsset TIGER NIK

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days MiraeAsset TIGER NIKKEI225 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, MiraeAsset TIGER is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with FrontView REIT, and MiraeAsset TIGER

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

The idea behind FrontView REIT, and MiraeAsset TIGER NIKKEI225 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.