Correlation Between FrontView REIT, and AirAsia X
Can any of the company-specific risk be diversified away by investing in both FrontView REIT, and AirAsia X 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 AirAsia X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FrontView REIT, and AirAsia X Bhd, you can compare the effects of market volatilities on FrontView REIT, and AirAsia X 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 AirAsia X. Check out your portfolio center. Please also check ongoing floating volatility patterns of FrontView REIT, and AirAsia X.
Diversification Opportunities for FrontView REIT, and AirAsia X
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between FrontView and AirAsia is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and AirAsia X Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AirAsia X Bhd 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 AirAsia X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AirAsia X Bhd has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and AirAsia X go up and down completely randomly.
Pair Corralation between FrontView REIT, and AirAsia X
Considering the 90-day investment horizon FrontView REIT, is expected to under-perform the AirAsia X. But the stock apears to be less risky and, when comparing its historical volatility, FrontView REIT, is 1.78 times less risky than AirAsia X. The stock trades about -0.03 of its potential returns per unit of risk. The AirAsia X Bhd is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 189.00 in AirAsia X Bhd on September 15, 2024 and sell it today you would earn a total of 0.00 from holding AirAsia X Bhd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
FrontView REIT, vs. AirAsia X Bhd
Performance |
| Timeline |
| FrontView REIT, |
| AirAsia X Bhd |
FrontView REIT, and AirAsia X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FrontView REIT, and AirAsia X
The main advantage of trading using opposite FrontView REIT, and AirAsia X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FrontView REIT, position performs unexpectedly, AirAsia X 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 AirAsia X will offset losses from the drop in AirAsia X's long position.| FrontView REIT, vs. CTO Realty Growth | FrontView REIT, vs. Armada Hoffler Properties | FrontView REIT, vs. Modiv Inc | FrontView REIT, vs. NexPoint Diversified Real |
| AirAsia X vs. Public Packages Holdings | AirAsia X vs. Binasat Communications Bhd | AirAsia X vs. Awanbiru Technology Bhd | AirAsia X vs. Sports Toto Berhad |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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