Correlation Between FrontView REIT, and Singha Estate

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

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

Diversification Opportunities for FrontView REIT, and Singha Estate

0.08

Correlation Coefficient

FrontView REIT,  Singha Estate

Significant diversification

The 3 months correlation between FrontView and Singha is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and Singha Estate Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singha Estate Public 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 Singha Estate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singha Estate Public has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and Singha Estate go up and down completely randomly.

Pair Corralation between FrontView REIT, and Singha Estate

Considering the 90-day investment horizon FrontView REIT, is expected to generate 3.92 times less return on investment than Singha Estate. But when comparing it to its historical volatility, FrontView REIT, is 1.42 times less risky than Singha Estate. It trades about 0.0 of its potential returns per unit of risk. Singha Estate Public is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  91.00  in Singha Estate Public on September 25, 2024 and sell it today you would earn a total of  0.00  from holding Singha Estate Public or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	90.48%
Values	Daily Returns

FrontView REIT,  vs.  Singha Estate Public

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 latest stock price agitation, may contribute to short-term losses for the retail investors.

Singha Estate Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Singha Estate Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's fundamental drivers remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with FrontView REIT, and Singha Estate

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

The idea behind FrontView REIT, and Singha Estate Public 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.