Correlation Between FrontView REIT, and McDonalds

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

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

Diversification Opportunities for FrontView REIT, and McDonalds

-0.03

Correlation Coefficient

FrontView REIT,  McDonalds

Good diversification

The 3 months correlation between FrontView and McDonalds is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and McDonalds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McDonalds 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 McDonalds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of McDonalds has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and McDonalds go up and down completely randomly.

Pair Corralation between FrontView REIT, and McDonalds

Considering the 90-day investment horizon FrontView REIT, is expected to under-perform the McDonalds. In addition to that, FrontView REIT, is 1.86 times more volatile than McDonalds. It trades about -0.08 of its total potential returns per unit of risk. McDonalds is currently generating about 0.11 per unit of volatility. If you would invest  594,170  in McDonalds on December 5, 2024 and sell it today you would earn a total of  45,820  from holding McDonalds or generate 7.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

FrontView REIT,  vs.  McDonalds

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 fragile 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.

McDonalds

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in McDonalds are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental indicators, McDonalds may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with FrontView REIT, and McDonalds

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

The idea behind FrontView REIT, and McDonalds 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.