Correlation Between FrontView REIT, and IFS Capital

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

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

Diversification Opportunities for FrontView REIT, and IFS Capital

-0.46

Correlation Coefficient

FrontView REIT,  IFS Capital

Very good diversification

The 3 months correlation between FrontView and IFS is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and IFS Capital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IFS Capital Public 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 IFS Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IFS Capital Public has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and IFS Capital go up and down completely randomly.

Pair Corralation between FrontView REIT, and IFS Capital

Considering the 90-day investment horizon FrontView REIT, is expected to under-perform the IFS Capital. In addition to that, FrontView REIT, is 1.37 times more volatile than IFS Capital Public. It trades about -0.23 of its total potential returns per unit of risk. IFS Capital Public is currently generating about 0.05 per unit of volatility. If you would invest  225.00  in IFS Capital Public on December 26, 2024 and sell it today you would earn a total of  11.00  from holding IFS Capital Public or generate 4.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

FrontView REIT,  vs.  IFS Capital Public

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.

IFS Capital Public

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in IFS Capital Public are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, IFS Capital is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with FrontView REIT, and IFS Capital

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

The idea behind FrontView REIT, and IFS Capital Public 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.