Correlation Between FrontView REIT, and Cerinnov Group

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

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

Diversification Opportunities for FrontView REIT, and Cerinnov Group

-0.24

Correlation Coefficient

FrontView REIT,  Cerinnov Group

Very good diversification

The 3 months correlation between FrontView and Cerinnov is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and Cerinnov Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cerinnov Group SA 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 Cerinnov Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cerinnov Group SA has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and Cerinnov Group go up and down completely randomly.

Pair Corralation between FrontView REIT, and Cerinnov Group

Considering the 90-day investment horizon FrontView REIT, is expected to under-perform the Cerinnov Group. But the stock apears to be less risky and, when comparing its historical volatility, FrontView REIT, is 6.66 times less risky than Cerinnov Group. The stock trades about -0.06 of its potential returns per unit of risk. The Cerinnov Group SA is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  72.00  in Cerinnov Group SA on September 28, 2024 and sell it today you would lose (2.00) from holding Cerinnov Group SA or give up 2.78% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

FrontView REIT,  vs.  Cerinnov Group SA

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.

Cerinnov Group SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cerinnov Group SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with FrontView REIT, and Cerinnov Group

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

The idea behind FrontView REIT, and Cerinnov Group SA 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.