Correlation Between FrontView REIT, and AddTech Hub

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

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

Diversification Opportunities for FrontView REIT, and AddTech Hub

0.38

Correlation Coefficient

FrontView REIT,  AddTech Hub

Weak diversification

The 3 months correlation between FrontView and AddTech is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and AddTech Hub Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AddTech Hub Public 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 AddTech Hub. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AddTech Hub Public has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and AddTech Hub go up and down completely randomly.

Pair Corralation between FrontView REIT, and AddTech Hub

Considering the 90-day investment horizon FrontView REIT, is expected to under-perform the AddTech Hub. But the stock apears to be less risky and, when comparing its historical volatility, FrontView REIT, is 1.11 times less risky than AddTech Hub. The stock trades about -0.09 of its potential returns per unit of risk. The AddTech Hub Public is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest  465.00  in AddTech Hub Public on December 10, 2024 and sell it today you would lose (85.00) from holding AddTech Hub Public or give up 18.28% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	89.34%
Values	Daily Returns

FrontView REIT,  vs.  AddTech Hub Public

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 fragile 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.

AddTech Hub Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days AddTech Hub Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with FrontView REIT, and AddTech Hub

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

The idea behind FrontView REIT, and AddTech Hub Public 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.

Check out your portfolio center.

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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.