Correlation Between FrontView REIT, and Immofonds

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

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

Diversification Opportunities for FrontView REIT, and Immofonds

-0.02

Correlation Coefficient

FrontView REIT,  Immofonds

Good diversification

The 3 months correlation between FrontView and Immofonds is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and Immofonds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immofonds 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 Immofonds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immofonds has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and Immofonds go up and down completely randomly.

Pair Corralation between FrontView REIT, and Immofonds

Considering the 90-day investment horizon FrontView REIT, is expected to generate 5.51 times less return on investment than Immofonds. In addition to that, FrontView REIT, is 1.91 times more volatile than Immofonds. It trades about 0.03 of its total potential returns per unit of risk. Immofonds is currently generating about 0.27 per unit of volatility. If you would invest  56,800  in Immofonds on September 27, 2024 and sell it today you would earn a total of  2,400  from holding Immofonds or generate 4.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

FrontView REIT,  vs.  Immofonds

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.

Immofonds

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Immofonds are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Immofonds may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with FrontView REIT, and Immofonds

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

The idea behind FrontView REIT, and Immofonds 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.