Correlation Between FrontView REIT, and PTT OIL+RETBUS-FOR-B

Can any of the company-specific risk be diversified away by investing in both FrontView REIT, and PTT OIL+RETBUS-FOR-B 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 PTT OIL+RETBUS-FOR-B into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between FrontView REIT, and PTT OILRETBUS FOR BA10, you can compare the effects of market volatilities on FrontView REIT, and PTT OIL+RETBUS-FOR-B 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 PTT OIL+RETBUS-FOR-B. Check out your portfolio center. Please also check ongoing floating volatility patterns of FrontView REIT, and PTT OIL+RETBUS-FOR-B.

Diversification Opportunities for FrontView REIT, and PTT OIL+RETBUS-FOR-B

0.6

Correlation Coefficient

FrontView REIT,  PTT OIL+RETBUS-FOR-B

Poor diversification

The 3 months correlation between FrontView and PTT is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and PTT OILRETBUS FOR BA10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTT OIL+RETBUS-FOR-B 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 PTT OIL+RETBUS-FOR-B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTT OIL+RETBUS-FOR-B has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and PTT OIL+RETBUS-FOR-B go up and down completely randomly.

Pair Corralation between FrontView REIT, and PTT OIL+RETBUS-FOR-B

Considering the 90-day investment horizon FrontView REIT, is expected to under-perform the PTT OIL+RETBUS-FOR-B. In addition to that, FrontView REIT, is 1.03 times more volatile than PTT OILRETBUS FOR BA10. It trades about -0.23 of its total potential returns per unit of risk. PTT OILRETBUS FOR BA10 is currently generating about -0.2 per unit of volatility. If you would invest  35.00  in PTT OILRETBUS FOR BA10 on December 26, 2024 and sell it today you would lose (9.00) from holding PTT OILRETBUS FOR BA10 or give up 25.71% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.36%
Values	Daily Returns

FrontView REIT,  vs.  PTT OILRETBUS FOR BA10

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 uncertain 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.

PTT OIL+RETBUS-FOR-B

Risk-Adjusted Performance

Very Weak

Over the last 90 days PTT OILRETBUS FOR BA10 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with FrontView REIT, and PTT OIL+RETBUS-FOR-B

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

The idea behind FrontView REIT, and PTT OILRETBUS FOR BA10 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.