Correlation Between FrontView REIT, and Amatheon Agri

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

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

Diversification Opportunities for FrontView REIT, and Amatheon Agri

-0.02

Correlation Coefficient

FrontView REIT,  Amatheon Agri

Good diversification

The 3 months correlation between FrontView and Amatheon is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and Amatheon Agri Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amatheon Agri Holding 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 Amatheon Agri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amatheon Agri Holding has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and Amatheon Agri go up and down completely randomly.

Pair Corralation between FrontView REIT, and Amatheon Agri

Considering the 90-day investment horizon FrontView REIT, is expected to under-perform the Amatheon Agri. But the stock apears to be less risky and, when comparing its historical volatility, FrontView REIT, is 8.13 times less risky than Amatheon Agri. The stock trades about -0.02 of its potential returns per unit of risk. The Amatheon Agri Holding is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  12.00  in Amatheon Agri Holding on September 26, 2024 and sell it today you would lose (10.20) from holding Amatheon Agri Holding or give up 85.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	18.99%
Values	Daily Returns

FrontView REIT,  vs.  Amatheon Agri Holding

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.

Amatheon Agri Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amatheon Agri Holding 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 Amatheon Agri

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

The idea behind FrontView REIT, and Amatheon Agri Holding 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.