Correlation Between FrontView REIT, and Bank Negara
Can any of the company-specific risk be diversified away by investing in both FrontView REIT, and Bank Negara 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 Bank Negara into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FrontView REIT, and Bank Negara Indonesia, you can compare the effects of market volatilities on FrontView REIT, and Bank Negara 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 Bank Negara. Check out your portfolio center. Please also check ongoing floating volatility patterns of FrontView REIT, and Bank Negara.
Diversification Opportunities for FrontView REIT, and Bank Negara
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between FrontView and Bank is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and Bank Negara Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Negara Indonesia 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 Bank Negara. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Negara Indonesia has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and Bank Negara go up and down completely randomly.
Pair Corralation between FrontView REIT, and Bank Negara
Considering the 90-day investment horizon FrontView REIT, is expected to generate 0.19 times more return on investment than Bank Negara. However, FrontView REIT, is 5.26 times less risky than Bank Negara. It trades about -0.06 of its potential returns per unit of risk. Bank Negara Indonesia is currently generating about -0.02 per unit of risk. If you would invest 1,713 in FrontView REIT, on December 5, 2024 and sell it today you would lose (33.00) from holding FrontView REIT, or give up 1.93% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
FrontView REIT, vs. Bank Negara Indonesia
Performance |
Timeline |
FrontView REIT, |
Bank Negara Indonesia |
FrontView REIT, and Bank Negara Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FrontView REIT, and Bank Negara
The main advantage of trading using opposite FrontView REIT, and Bank Negara positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FrontView REIT, position performs unexpectedly, Bank Negara 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 Bank Negara will offset losses from the drop in Bank Negara's long position.FrontView REIT, vs. CF Industries Holdings | FrontView REIT, vs. AMCON Distributing | FrontView REIT, vs. NL Industries | FrontView REIT, vs. Sligro Food Group |
Bank Negara vs. Banco Bradesco SA | Bank Negara vs. Itau Unibanco Banco | Bank Negara vs. Lloyds Banking Group | Bank Negara vs. Deutsche Bank AG |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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