Correlation Between Coupang LLC and FrontView REIT,

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

By analyzing existing cross correlation between Coupang LLC and FrontView REIT,, you can compare the effects of market volatilities on Coupang LLC 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 Coupang LLC with a short position of FrontView REIT,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coupang LLC and FrontView REIT,.

Diversification Opportunities for Coupang LLC and FrontView REIT,

0.46

Correlation Coefficient

Coupang LLC  FrontView REIT,

Very weak diversification

The 3 months correlation between Coupang and FrontView is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Coupang LLC and FrontView REIT, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FrontView REIT, and Coupang LLC 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 Coupang LLC 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 Coupang LLC i.e., Coupang LLC and FrontView REIT, go up and down completely randomly.

Pair Corralation between Coupang LLC and FrontView REIT,

Given the investment horizon of 90 days Coupang LLC is expected to generate 26.19 times less return on investment than FrontView REIT,. But when comparing it to its historical volatility, Coupang LLC is 1.61 times less risky than FrontView REIT,. It trades about 0.01 of its potential returns per unit of risk. FrontView REIT, is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  1,120  in FrontView REIT, on May 27, 2025 and sell it today you would earn a total of  258.50  from holding FrontView REIT, or generate 23.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Coupang LLC  vs.  FrontView REIT,

Coupang LLC

Risk-Adjusted Performance

Weak

Over the last 90 days Coupang LLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Coupang LLC is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

FrontView REIT,

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in FrontView REIT, are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, FrontView REIT, reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Coupang LLC and FrontView REIT,

The main advantage of trading using opposite Coupang LLC and FrontView REIT, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coupang LLC 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.

The idea behind Coupang LLC and FrontView REIT, 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 Transaction History module to view history of all your transactions and understand their impact on performance.