Correlation Between FrontView REIT, and Kirin Holdings

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

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

Diversification Opportunities for FrontView REIT, and Kirin Holdings

0.63

Correlation Coefficient

FrontView REIT,  Kirin Holdings

Poor diversification

The 3 months correlation between FrontView and Kirin is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and Kirin Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kirin Holdings 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 Kirin Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kirin Holdings has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and Kirin Holdings go up and down completely randomly.

Pair Corralation between FrontView REIT, and Kirin Holdings

Considering the 90-day investment horizon FrontView REIT, is expected to under-perform the Kirin Holdings. In addition to that, FrontView REIT, is 1.38 times more volatile than Kirin Holdings. It trades about -0.05 of its total potential returns per unit of risk. Kirin Holdings is currently generating about 0.0 per unit of volatility. If you would invest  1,397  in Kirin Holdings on December 4, 2024 and sell it today you would lose (107.00) from holding Kirin Holdings or give up 7.66% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	20.8%
Values	Daily Returns

FrontView REIT,  vs.  Kirin Holdings

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 latest unsteady performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Kirin Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kirin Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Kirin Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with FrontView REIT, and Kirin Holdings

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

The idea behind FrontView REIT, and Kirin Holdings 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.