Correlation Between McGrath RentCorp and FrontView REIT,
Can any of the company-specific risk be diversified away by investing in both McGrath RentCorp and FrontView REIT, 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 McGrath RentCorp and FrontView REIT, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McGrath RentCorp and FrontView REIT,, you can compare the effects of market volatilities on McGrath RentCorp and FrontView REIT, 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 McGrath RentCorp with a short position of FrontView REIT,. Check out your portfolio center. Please also check ongoing floating volatility patterns of McGrath RentCorp and FrontView REIT,.
Diversification Opportunities for McGrath RentCorp and FrontView REIT,
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between McGrath and FrontView is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding McGrath RentCorp and FrontView REIT, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FrontView REIT, and McGrath RentCorp 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 McGrath RentCorp are associated (or correlated) with FrontView REIT,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FrontView REIT, has no effect on the direction of McGrath RentCorp i.e., McGrath RentCorp and FrontView REIT, go up and down completely randomly.
Pair Corralation between McGrath RentCorp and FrontView REIT,
Given the investment horizon of 90 days McGrath RentCorp is expected to generate 0.34 times more return on investment than FrontView REIT,. However, McGrath RentCorp is 2.98 times less risky than FrontView REIT,. It trades about 0.5 of its potential returns per unit of risk. FrontView REIT, is currently generating about -0.01 per unit of risk. If you would invest 10,964 in McGrath RentCorp on November 6, 2024 and sell it today you would earn a total of 1,319 from holding McGrath RentCorp or generate 12.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
McGrath RentCorp vs. FrontView REIT,
Performance |
| Timeline |
| McGrath RentCorp |
| FrontView REIT, |
McGrath RentCorp and FrontView REIT, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McGrath RentCorp and FrontView REIT,
The main advantage of trading using opposite McGrath RentCorp and FrontView REIT, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McGrath RentCorp position performs unexpectedly, FrontView REIT, 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 FrontView REIT, will offset losses from the drop in FrontView REIT,'s long position.| McGrath RentCorp vs. Alta Equipment Group | McGrath RentCorp vs. GATX Corporation | McGrath RentCorp vs. Mega Matrix Corp | McGrath RentCorp vs. FTAI Aviation Ltd |
| FrontView REIT, vs. Unilever PLC ADR | FrontView REIT, vs. Procter Gamble | FrontView REIT, vs. Fernhill Beverage | FrontView REIT, vs. NH Foods Ltd |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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