Correlation Between FrontView REIT, and REX AI

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

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

Diversification Opportunities for FrontView REIT, and REX AI

0.44

Correlation Coefficient

FrontView REIT,  REX AI

Very weak diversification

The 3 months correlation between FrontView and REX is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and REX AI Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REX AI Equity 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 REX AI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REX AI Equity has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and REX AI go up and down completely randomly.

Pair Corralation between FrontView REIT, and REX AI

Considering the 90-day investment horizon FrontView REIT, is expected to under-perform the REX AI. In addition to that, FrontView REIT, is 1.36 times more volatile than REX AI Equity. It trades about -0.08 of its total potential returns per unit of risk. REX AI Equity is currently generating about 0.05 per unit of volatility. If you would invest  5,044  in REX AI Equity on September 23, 2024 and sell it today you would earn a total of  49.00  from holding REX AI Equity or generate 0.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

FrontView REIT,  vs.  REX AI Equity

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.

REX AI Equity

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in REX AI Equity are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, REX AI may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with FrontView REIT, and REX AI

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

The idea behind FrontView REIT, and REX AI Equity 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.