Correlation Between FrontView REIT, and Codan

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

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

Diversification Opportunities for FrontView REIT, and Codan

-0.1

Correlation Coefficient

FrontView REIT,  Codan

Good diversification

The 3 months correlation between FrontView and Codan is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and Codan Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codan Limited 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 Codan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Codan Limited has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and Codan go up and down completely randomly.

Pair Corralation between FrontView REIT, and Codan

Considering the 90-day investment horizon FrontView REIT, is expected to generate 10.22 times less return on investment than Codan. But when comparing it to its historical volatility, FrontView REIT, is 2.61 times less risky than Codan. It trades about 0.03 of its potential returns per unit of risk. Codan Limited is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  730.00  in Codan Limited on April 25, 2025 and sell it today you would earn a total of  329.00  from holding Codan Limited or generate 45.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

FrontView REIT,  vs.  Codan Limited

FrontView REIT,

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in FrontView REIT, are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, FrontView REIT, is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Codan Limited

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Codan Limited are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, Codan reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with FrontView REIT, and Codan

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

The idea behind FrontView REIT, and Codan Limited 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.