Correlation Between FrontView REIT, and Swiss Life

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

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

Diversification Opportunities for FrontView REIT, and Swiss Life

-0.32

Correlation Coefficient

FrontView REIT,  Swiss Life

Very good diversification

The 3 months correlation between FrontView and Swiss is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and Swiss Life Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swiss Life Holding 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 Swiss Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swiss Life Holding has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and Swiss Life go up and down completely randomly.

Pair Corralation between FrontView REIT, and Swiss Life

Considering the 90-day investment horizon FrontView REIT, is expected to under-perform the Swiss Life. In addition to that, FrontView REIT, is 1.47 times more volatile than Swiss Life Holding. It trades about -0.11 of its total potential returns per unit of risk. Swiss Life Holding is currently generating about 0.16 per unit of volatility. If you would invest  3,874  in Swiss Life Holding on December 4, 2024 and sell it today you would earn a total of  567.00  from holding Swiss Life Holding or generate 14.64% return on investment over 90 days.

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

FrontView REIT,  vs.  Swiss Life Holding

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.

Swiss Life Holding

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Swiss Life Holding are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak primary indicators, Swiss Life showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with FrontView REIT, and Swiss Life

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

The idea behind FrontView REIT, and Swiss Life Holding 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.