Correlation Between FrontView REIT, and G City

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

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

Diversification Opportunities for FrontView REIT, and G City

0.86

Correlation Coefficient

FrontView REIT,  G City

Very poor diversification

The 3 months correlation between FrontView and GCT is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and G City in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G City 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 G City. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G City has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and G City go up and down completely randomly.

Pair Corralation between FrontView REIT, and G City

Considering the 90-day investment horizon FrontView REIT, is expected to under-perform the G City. In addition to that, FrontView REIT, is 1.11 times more volatile than G City. It trades about -0.2 of its total potential returns per unit of risk. G City is currently generating about -0.11 per unit of volatility. If you would invest  132,100  in G City on December 28, 2024 and sell it today you would lose (15,900) from holding G City or give up 12.04% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	86.67%
Values	Daily Returns

FrontView REIT,  vs.  G City

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 uncertain 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.

G City

Risk-Adjusted Performance

Very Weak

Over the last 90 days G City has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with FrontView REIT, and G City

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

The idea behind FrontView REIT, and G City 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.