Correlation Between FrontView REIT, and Sunwoda Electronic

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

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

Diversification Opportunities for FrontView REIT, and Sunwoda Electronic

0.24

Correlation Coefficient

FrontView REIT,  Sunwoda Electronic

Modest diversification

The 3 months correlation between FrontView and Sunwoda is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and Sunwoda Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunwoda Electronic 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 Sunwoda Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunwoda Electronic has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and Sunwoda Electronic go up and down completely randomly.

Pair Corralation between FrontView REIT, and Sunwoda Electronic

Considering the 90-day investment horizon FrontView REIT, is expected to under-perform the Sunwoda Electronic. But the stock apears to be less risky and, when comparing its historical volatility, FrontView REIT, is 1.81 times less risky than Sunwoda Electronic. The stock trades about -0.07 of its potential returns per unit of risk. The Sunwoda Electronic is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  1,428  in Sunwoda Electronic on December 8, 2024 and sell it today you would earn a total of  938.00  from holding Sunwoda Electronic or generate 65.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	45.38%
Values	Daily Returns

FrontView REIT,  vs.  Sunwoda Electronic

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 unfluctuating 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.

Sunwoda Electronic

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sunwoda Electronic are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Sunwoda Electronic 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 Sunwoda Electronic

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

The idea behind FrontView REIT, and Sunwoda Electronic 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 Stocks Directory module to find actively traded stocks across global markets.