Correlation Between FrontView REIT, and MFEC PCL

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

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

Diversification Opportunities for FrontView REIT, and MFEC PCL

0.54

Correlation Coefficient

FrontView REIT,  MFEC PCL

Very weak diversification

The 3 months correlation between FrontView and MFEC is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and MFEC PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFEC PCL 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 MFEC PCL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFEC PCL has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and MFEC PCL go up and down completely randomly.

Pair Corralation between FrontView REIT, and MFEC PCL

Considering the 90-day investment horizon FrontView REIT, is expected to under-perform the MFEC PCL. But the stock apears to be less risky and, when comparing its historical volatility, FrontView REIT, is 1.03 times less risky than MFEC PCL. The stock trades about -0.14 of its potential returns per unit of risk. The MFEC PCL is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  570.00  in MFEC PCL on December 4, 2024 and sell it today you would earn a total of  25.00  from holding MFEC PCL or generate 4.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

FrontView REIT,  vs.  MFEC PCL

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.

MFEC PCL

Risk-Adjusted Performance

Very Weak

Over the last 90 days MFEC PCL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, MFEC PCL 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 MFEC PCL

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

The idea behind FrontView REIT, and MFEC PCL 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.