Correlation Between FrontView REIT, and CI Canadian

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

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

Diversification Opportunities for FrontView REIT, and CI Canadian

0.25

Correlation Coefficient

FrontView REIT,  CI Canadian

Modest diversification

The 3 months correlation between FrontView and CAGG is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and CI Canadian Aggregate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Canadian Aggregate 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 CI Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Canadian Aggregate has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and CI Canadian go up and down completely randomly.

Pair Corralation between FrontView REIT, and CI Canadian

Considering the 90-day investment horizon FrontView REIT, is expected to under-perform the CI Canadian. In addition to that, FrontView REIT, is 6.44 times more volatile than CI Canadian Aggregate. It trades about -0.08 of its total potential returns per unit of risk. CI Canadian Aggregate is currently generating about 0.07 per unit of volatility. If you would invest  4,486  in CI Canadian Aggregate on December 3, 2024 and sell it today you would earn a total of  62.00  from holding CI Canadian Aggregate or generate 1.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

FrontView REIT,  vs.  CI Canadian Aggregate

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 latest unfluctuating 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.

CI Canadian Aggregate

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CI Canadian Aggregate are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, CI Canadian is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with FrontView REIT, and CI Canadian

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

The idea behind FrontView REIT, and CI Canadian Aggregate 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.