Correlation Between FrontView REIT, and Guardian Canadian

Can any of the company-specific risk be diversified away by investing in both FrontView REIT, and Guardian 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 Guardian 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 Guardian Canadian Bond, you can compare the effects of market volatilities on FrontView REIT, and Guardian 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 Guardian Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of FrontView REIT, and Guardian Canadian.

Diversification Opportunities for FrontView REIT, and Guardian Canadian

0.16

Correlation Coefficient

FrontView REIT,  Guardian Canadian

Average diversification

The 3 months correlation between FrontView and Guardian is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and Guardian Canadian Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardian Canadian Bond 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 Guardian Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guardian Canadian Bond has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and Guardian Canadian go up and down completely randomly.

Pair Corralation between FrontView REIT, and Guardian Canadian

Considering the 90-day investment horizon FrontView REIT, is expected to under-perform the Guardian Canadian. In addition to that, FrontView REIT, is 4.34 times more volatile than Guardian Canadian Bond. It trades about -0.06 of its total potential returns per unit of risk. Guardian Canadian Bond is currently generating about 0.04 per unit of volatility. If you would invest  1,716  in Guardian Canadian Bond on December 4, 2024 and sell it today you would earn a total of  162.00  from holding Guardian Canadian Bond or generate 9.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	21.21%
Values	Daily Returns

FrontView REIT,  vs.  Guardian Canadian Bond

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 fragile performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Guardian Canadian Bond

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Guardian Canadian Bond are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Guardian 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 Guardian Canadian

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

The idea behind FrontView REIT, and Guardian Canadian Bond 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.