Correlation Between FrontView REIT, and BGF Global

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

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

Diversification Opportunities for FrontView REIT, and BGF Global

-0.26

Correlation Coefficient

FrontView REIT,  BGF Global

Very good diversification

The 3 months correlation between FrontView and BGF is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and BGF Global Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGF Global Allocation 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 BGF Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGF Global Allocation has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and BGF Global go up and down completely randomly.

Pair Corralation between FrontView REIT, and BGF Global

Considering the 90-day investment horizon FrontView REIT, is expected to generate 6.92 times less return on investment than BGF Global. In addition to that, FrontView REIT, is 1.85 times more volatile than BGF Global Allocation. It trades about 0.01 of its total potential returns per unit of risk. BGF Global Allocation is currently generating about 0.17 per unit of volatility. If you would invest  7,108  in BGF Global Allocation on September 13, 2024 and sell it today you would earn a total of  567.00  from holding BGF Global Allocation or generate 7.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	85.25%
Values	Daily Returns

FrontView REIT,  vs.  BGF Global Allocation

FrontView REIT,

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in FrontView REIT, are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, FrontView REIT, is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

BGF Global Allocation

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in BGF Global Allocation are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of rather weak technical and fundamental indicators, BGF Global may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with FrontView REIT, and BGF Global

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

The idea behind FrontView REIT, and BGF Global Allocation 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.