Correlation Between FrontView REIT, and Nexi SpA

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

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

Diversification Opportunities for FrontView REIT, and Nexi SpA

0.0

Correlation Coefficient

FrontView REIT,  Nexi SpA

Pay attention - limited upside

The 3 months correlation between FrontView and Nexi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and Nexi SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexi SpA 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 Nexi SpA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexi SpA has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and Nexi SpA go up and down completely randomly.

Pair Corralation between FrontView REIT, and Nexi SpA

Considering the 90-day investment horizon FrontView REIT, is expected to generate 3.9 times less return on investment than Nexi SpA. In addition to that, FrontView REIT, is 1.1 times more volatile than Nexi SpA. It trades about 0.03 of its total potential returns per unit of risk. Nexi SpA is currently generating about 0.12 per unit of volatility. If you would invest  524.00  in Nexi SpA on May 1, 2025 and sell it today you would earn a total of  82.00  from holding Nexi SpA or generate 15.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

FrontView REIT,  vs.  Nexi SpA

FrontView REIT,

Risk-Adjusted Performance

Insignificant

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 latest stock price agitation, may contribute to short-term losses for the retail investors.

Nexi SpA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Nexi SpA are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Nexi SpA showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with FrontView REIT, and Nexi SpA

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

The idea behind FrontView REIT, and Nexi SpA 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.