Correlation Between FrontView REIT, and Jinli Group

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

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

Diversification Opportunities for FrontView REIT, and Jinli Group

0.78

Correlation Coefficient

FrontView REIT,  Jinli Group

Poor diversification

The 3 months correlation between FrontView and Jinli is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and Jinli Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinli Group Holdings 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 Jinli Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinli Group Holdings has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and Jinli Group go up and down completely randomly.

Pair Corralation between FrontView REIT, and Jinli Group

Considering the 90-day investment horizon FrontView REIT, is expected to under-perform the Jinli Group. In addition to that, FrontView REIT, is 1.06 times more volatile than Jinli Group Holdings. It trades about -0.05 of its total potential returns per unit of risk. Jinli Group Holdings is currently generating about 0.02 per unit of volatility. If you would invest  1,005  in Jinli Group Holdings on December 5, 2024 and sell it today you would earn a total of  75.00  from holding Jinli Group Holdings or generate 7.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	21.83%
Values	Daily Returns

FrontView REIT,  vs.  Jinli Group Holdings

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 fragile 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.

Jinli Group Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jinli Group Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with FrontView REIT, and Jinli Group

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

The idea behind FrontView REIT, and Jinli Group Holdings 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.