Correlation Between FrontView REIT, and SmartKem, Common

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

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

Diversification Opportunities for FrontView REIT, and SmartKem, Common

-0.16

Correlation Coefficient

FrontView REIT,  SmartKem, Common

Good diversification

The 3 months correlation between FrontView and SmartKem, is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and SmartKem, Common Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SmartKem, Common Stock 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 SmartKem, Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SmartKem, Common Stock has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and SmartKem, Common go up and down completely randomly.

Pair Corralation between FrontView REIT, and SmartKem, Common

Considering the 90-day investment horizon FrontView REIT, is expected to under-perform the SmartKem, Common. But the stock apears to be less risky and, when comparing its historical volatility, FrontView REIT, is 9.85 times less risky than SmartKem, Common. The stock trades about -0.05 of its potential returns per unit of risk. The SmartKem, Common Stock is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  461.00  in SmartKem, Common Stock on September 22, 2024 and sell it today you would lose (165.00) from holding SmartKem, Common Stock or give up 35.79% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	90.63%
Values	Daily Returns

FrontView REIT,  vs.  SmartKem, Common Stock

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.

SmartKem, Common Stock

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SmartKem, Common Stock has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite unfluctuating basic indicators, SmartKem, Common may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with FrontView REIT, and SmartKem, Common

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

The idea behind FrontView REIT, and SmartKem, Common Stock 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..