Correlation Between FrontView REIT, and Agile Content

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

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

Diversification Opportunities for FrontView REIT, and Agile Content

0.28

Correlation Coefficient

FrontView REIT,  Agile Content

Modest diversification

The 3 months correlation between FrontView and Agile is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and Agile Content SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agile Content SA 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 Agile Content. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agile Content SA has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and Agile Content go up and down completely randomly.

Pair Corralation between FrontView REIT, and Agile Content

Considering the 90-day investment horizon FrontView REIT, is expected to under-perform the Agile Content. But the stock apears to be less risky and, when comparing its historical volatility, FrontView REIT, is 1.9 times less risky than Agile Content. The stock trades about -0.18 of its potential returns per unit of risk. The Agile Content SA is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest  304.00  in Agile Content SA on October 7, 2024 and sell it today you would lose (16.00) from holding Agile Content SA or give up 5.26% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.0%
Values	Daily Returns

FrontView REIT,  vs.  Agile Content SA

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 recent stock price agitation, may contribute to short-term losses for the retail investors.

Agile Content SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Agile Content SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with FrontView REIT, and Agile Content

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

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