Correlation Between FrontView REIT, and GENTING SG

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

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

Diversification Opportunities for FrontView REIT, and GENTING SG

0.34

Correlation Coefficient

FrontView REIT,  GENTING SG

Weak diversification

The 3 months correlation between FrontView and GENTING is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and GENTING SG LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENTING SG LTD 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 GENTING SG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENTING SG LTD has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and GENTING SG go up and down completely randomly.

Pair Corralation between FrontView REIT, and GENTING SG

Considering the 90-day investment horizon FrontView REIT, is expected to under-perform the GENTING SG. But the stock apears to be less risky and, when comparing its historical volatility, FrontView REIT, is 1.38 times less risky than GENTING SG. The stock trades about -0.06 of its potential returns per unit of risk. The GENTING SG LTD is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  59.00  in GENTING SG LTD on October 22, 2024 and sell it today you would lose (8.00) from holding GENTING SG LTD or give up 13.56% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	15.34%
Values	Daily Returns

FrontView REIT,  vs.  GENTING SG LTD

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 latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

GENTING SG LTD

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GENTING SG LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with FrontView REIT, and GENTING SG

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

The idea behind FrontView REIT, and GENTING SG LTD 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.