Correlation Between FrontView REIT, and Abpro Holdings

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

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

Diversification Opportunities for FrontView REIT, and Abpro Holdings

-0.39

Correlation Coefficient

FrontView REIT,  Abpro Holdings

Very good diversification

The 3 months correlation between FrontView and Abpro is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and Abpro Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abpro 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 Abpro Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abpro Holdings has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and Abpro Holdings go up and down completely randomly.

Pair Corralation between FrontView REIT, and Abpro Holdings

Considering the 90-day investment horizon FrontView REIT, is expected to under-perform the Abpro Holdings. But the stock apears to be less risky and, when comparing its historical volatility, FrontView REIT, is 22.63 times less risky than Abpro Holdings. The stock trades about -0.04 of its potential returns per unit of risk. The Abpro Holdings is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  4.40  in Abpro Holdings on September 22, 2024 and sell it today you would earn a total of  5.60  from holding Abpro Holdings or generate 127.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	24.47%
Values	Daily Returns

FrontView REIT,  vs.  Abpro Holdings

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 relatively invariable basic indicators, FrontView REIT, is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Abpro Holdings

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Abpro Holdings are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Abpro Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with FrontView REIT, and Abpro Holdings

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

The idea behind FrontView REIT, and Abpro 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.