Correlation Between FrontView REIT, and General Commercial

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

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

Diversification Opportunities for FrontView REIT, and General Commercial

-0.72

Correlation Coefficient

FrontView REIT,  General Commercial

Pay attention - limited upside

The 3 months correlation between FrontView and General is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and General Commercial Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Commercial 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 General Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Commercial has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and General Commercial go up and down completely randomly.

Pair Corralation between FrontView REIT, and General Commercial

Considering the 90-day investment horizon FrontView REIT, is expected to under-perform the General Commercial. But the stock apears to be less risky and, when comparing its historical volatility, FrontView REIT, is 1.19 times less risky than General Commercial. The stock trades about -0.06 of its potential returns per unit of risk. The General Commercial Industrial is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  114.00  in General Commercial Industrial on December 4, 2024 and sell it today you would earn a total of  35.00  from holding General Commercial Industrial or generate 30.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	21.47%
Values	Daily Returns

FrontView REIT,  vs.  General Commercial Industrial

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 unsteady 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.

General Commercial

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in General Commercial Industrial are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, General Commercial sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with FrontView REIT, and General Commercial

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

The idea behind FrontView REIT, and General Commercial Industrial 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.