Correlation Between FrontView REIT, and Segro Plc

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

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

Diversification Opportunities for FrontView REIT, and Segro Plc

0.59

Correlation Coefficient

FrontView REIT,  Segro Plc

Very weak diversification

The 3 months correlation between FrontView and Segro is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and Segro Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Segro Plc 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 Segro Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Segro Plc has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and Segro Plc go up and down completely randomly.

Pair Corralation between FrontView REIT, and Segro Plc

Considering the 90-day investment horizon FrontView REIT, is expected to under-perform the Segro Plc. In addition to that, FrontView REIT, is 1.58 times more volatile than Segro Plc. It trades about -0.09 of its total potential returns per unit of risk. Segro Plc is currently generating about -0.08 per unit of volatility. If you would invest  75,160  in Segro Plc on October 22, 2024 and sell it today you would lose (3,420) from holding Segro Plc or give up 4.55% of portfolio value over 90 days.

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

FrontView REIT,  vs.  Segro Plc

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.

Segro Plc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Segro Plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with FrontView REIT, and Segro Plc

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

The idea behind FrontView REIT, and Segro Plc 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.