Correlation Between FrontView REIT, and Electromagnetica

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

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

Diversification Opportunities for FrontView REIT, and Electromagnetica

-0.47

Correlation Coefficient

FrontView REIT,  Electromagnetica

Very good diversification

The 3 months correlation between FrontView and Electromagnetica is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and Electromagnetica SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electromagnetica 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 Electromagnetica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electromagnetica has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and Electromagnetica go up and down completely randomly.

Pair Corralation between FrontView REIT, and Electromagnetica

Considering the 90-day investment horizon FrontView REIT, is expected to generate 6.59 times less return on investment than Electromagnetica. But when comparing it to its historical volatility, FrontView REIT, is 1.34 times less risky than Electromagnetica. It trades about 0.03 of its potential returns per unit of risk. Electromagnetica SA is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  20.00  in Electromagnetica SA on September 27, 2024 and sell it today you would earn a total of  1.00  from holding Electromagnetica SA or generate 5.0% return on investment over 90 days.

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

FrontView REIT,  vs.  Electromagnetica 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 newest stock price agitation, may contribute to short-term losses for the retail investors.

Electromagnetica

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Electromagnetica SA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Electromagnetica may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with FrontView REIT, and Electromagnetica

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

The idea behind FrontView REIT, and Electromagnetica 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.