Correlation Between FrontView REIT, and AMADEUS IT

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

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

Diversification Opportunities for FrontView REIT, and AMADEUS IT

0.45

Correlation Coefficient

FrontView REIT,  AMADEUS IT

Very weak diversification

The 3 months correlation between FrontView and AMADEUS is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and AMADEUS IT GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMADEUS IT GRP 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 AMADEUS IT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMADEUS IT GRP has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and AMADEUS IT go up and down completely randomly.

Pair Corralation between FrontView REIT, and AMADEUS IT

Considering the 90-day investment horizon FrontView REIT, is expected to under-perform the AMADEUS IT. In addition to that, FrontView REIT, is 1.14 times more volatile than AMADEUS IT GRP. It trades about -0.04 of its total potential returns per unit of risk. AMADEUS IT GRP is currently generating about 0.02 per unit of volatility. If you would invest  6,500  in AMADEUS IT GRP on September 23, 2024 and sell it today you would earn a total of  100.00  from holding AMADEUS IT GRP or generate 1.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	89.39%
Values	Daily Returns

FrontView REIT,  vs.  AMADEUS IT GRP

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.

AMADEUS IT GRP

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in AMADEUS IT GRP are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, AMADEUS IT is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with FrontView REIT, and AMADEUS IT

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

The idea behind FrontView REIT, and AMADEUS IT GRP 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.