Correlation Between FrontView REIT, and Xeros Technology

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

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

Diversification Opportunities for FrontView REIT, and Xeros Technology

0.14

Correlation Coefficient

FrontView REIT,  Xeros Technology

Average diversification

The 3 months correlation between FrontView and Xeros is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and Xeros Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xeros Technology 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 Xeros Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xeros Technology has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and Xeros Technology go up and down completely randomly.

Pair Corralation between FrontView REIT, and Xeros Technology

Considering the 90-day investment horizon FrontView REIT, is expected to under-perform the Xeros Technology. But the stock apears to be less risky and, when comparing its historical volatility, FrontView REIT, is 2.54 times less risky than Xeros Technology. The stock trades about -0.14 of its potential returns per unit of risk. The Xeros Technology Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  53.00  in Xeros Technology Group on October 15, 2024 and sell it today you would earn a total of  2.00  from holding Xeros Technology Group or generate 3.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

FrontView REIT,  vs.  Xeros Technology Group

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 uncertain performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Xeros Technology

Risk-Adjusted Performance

2 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Xeros Technology Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Xeros Technology may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with FrontView REIT, and Xeros Technology

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

The idea behind FrontView REIT, and Xeros Technology Group 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.