Correlation Between FrontView REIT, and Amaya Leisure

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

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

Diversification Opportunities for FrontView REIT, and Amaya Leisure

-0.29

Correlation Coefficient

FrontView REIT,  Amaya Leisure

Very good diversification

The 3 months correlation between FrontView and Amaya is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and Amaya Leisure PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amaya Leisure PLC 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 Amaya Leisure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amaya Leisure PLC has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and Amaya Leisure go up and down completely randomly.

Pair Corralation between FrontView REIT, and Amaya Leisure

Considering the 90-day investment horizon FrontView REIT, is expected to under-perform the Amaya Leisure. But the stock apears to be less risky and, when comparing its historical volatility, FrontView REIT, is 1.22 times less risky than Amaya Leisure. The stock trades about -0.08 of its potential returns per unit of risk. The Amaya Leisure PLC is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest  3,200  in Amaya Leisure PLC on December 5, 2024 and sell it today you would lose (290.00) from holding Amaya Leisure PLC or give up 9.06% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.61%
Values	Daily Returns

FrontView REIT,  vs.  Amaya Leisure PLC

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 fragile 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.

Amaya Leisure PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Amaya Leisure PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with FrontView REIT, and Amaya Leisure

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

The idea behind FrontView REIT, and Amaya Leisure PLC 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.