Correlation Between FrontView REIT, and Hwa Fong

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

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

Diversification Opportunities for FrontView REIT, and Hwa Fong

-0.1

Correlation Coefficient

FrontView REIT,  Hwa Fong

Good diversification

The 3 months correlation between FrontView and Hwa is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and Hwa Fong Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hwa Fong Rubber 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 Hwa Fong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hwa Fong Rubber has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and Hwa Fong go up and down completely randomly.

Pair Corralation between FrontView REIT, and Hwa Fong

Considering the 90-day investment horizon FrontView REIT, is expected to under-perform the Hwa Fong. In addition to that, FrontView REIT, is 1.7 times more volatile than Hwa Fong Rubber. It trades about -0.03 of its total potential returns per unit of risk. Hwa Fong Rubber is currently generating about 0.22 per unit of volatility. If you would invest  1,760  in Hwa Fong Rubber on September 15, 2024 and sell it today you would earn a total of  65.00  from holding Hwa Fong Rubber or generate 3.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

FrontView REIT,  vs.  Hwa Fong Rubber

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 relatively invariable basic indicators, FrontView REIT, is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Hwa Fong Rubber

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hwa Fong Rubber has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Hwa Fong is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with FrontView REIT, and Hwa Fong

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

The idea behind FrontView REIT, and Hwa Fong Rubber 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.