Correlation Between FrontView REIT, and China Asset

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

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

Diversification Opportunities for FrontView REIT, and China Asset

-0.74

Correlation Coefficient

FrontView REIT,  China Asset

Pay attention - limited upside

The 3 months correlation between FrontView and China is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and China Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Asset Management 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 China Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Asset Management has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and China Asset go up and down completely randomly.

Pair Corralation between FrontView REIT, and China Asset

Considering the 90-day investment horizon FrontView REIT, is expected to under-perform the China Asset. In addition to that, FrontView REIT, is 1.63 times more volatile than China Asset Management. It trades about -0.08 of its total potential returns per unit of risk. China Asset Management is currently generating about 0.24 per unit of volatility. If you would invest  317.00  in China Asset Management on December 2, 2024 and sell it today you would earn a total of  65.00  from holding China Asset Management or generate 20.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	96.72%
Values	Daily Returns

FrontView REIT,  vs.  China Asset Management

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 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.

China Asset Management

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in China Asset Management are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, China Asset sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with FrontView REIT, and China Asset

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

The idea behind FrontView REIT, and China Asset Management 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.