Correlation Between FrontView REIT, and Nonthavej Hospital

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

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

Diversification Opportunities for FrontView REIT, and Nonthavej Hospital

0.66

Correlation Coefficient

FrontView REIT,  Nonthavej Hospital

Poor diversification

The 3 months correlation between FrontView and Nonthavej is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and Nonthavej Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nonthavej Hospital 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 Nonthavej Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nonthavej Hospital Public has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and Nonthavej Hospital go up and down completely randomly.

Pair Corralation between FrontView REIT, and Nonthavej Hospital

Considering the 90-day investment horizon FrontView REIT, is expected to under-perform the Nonthavej Hospital. But the stock apears to be less risky and, when comparing its historical volatility, FrontView REIT, is 25.66 times less risky than Nonthavej Hospital. The stock trades about -0.06 of its potential returns per unit of risk. The Nonthavej Hospital Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  4,043  in Nonthavej Hospital Public on October 22, 2024 and sell it today you would lose (1,068) from holding Nonthavej Hospital Public or give up 26.42% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	16.04%
Values	Daily Returns

FrontView REIT,  vs.  Nonthavej Hospital Public

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 latest weak 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.

Nonthavej Hospital Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nonthavej Hospital Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Nonthavej Hospital 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 Nonthavej Hospital

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

The idea behind FrontView REIT, and Nonthavej Hospital 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.