Correlation Between FrontView REIT, and CONSOL Energy

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

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

Diversification Opportunities for FrontView REIT, and CONSOL Energy

0.28

Correlation Coefficient

FrontView REIT,  CONSOL Energy

Modest diversification

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

Pair Corralation between FrontView REIT, and CONSOL Energy

Considering the 90-day investment horizon FrontView REIT, is expected to under-perform the CONSOL Energy. But the stock apears to be less risky and, when comparing its historical volatility, FrontView REIT, is 1.13 times less risky than CONSOL Energy. The stock trades about -0.37 of its potential returns per unit of risk. The CONSOL Energy is currently generating about -0.19 of returns per unit of risk over similar time horizon. If you would invest  11,105  in CONSOL Energy on October 12, 2024 and sell it today you would lose (720.00) from holding CONSOL Energy or give up 6.48% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	85.0%
Values	Daily Returns

FrontView REIT,  vs.  CONSOL Energy

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 latest abnormal 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.

CONSOL Energy

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CONSOL Energy are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, CONSOL Energy is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with FrontView REIT, and CONSOL Energy

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

The idea behind FrontView REIT, and CONSOL Energy 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.