Correlation Between FrontView REIT, and Sono Group

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

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

Diversification Opportunities for FrontView REIT, and Sono Group

-0.59

Correlation Coefficient

FrontView REIT,  Sono Group

Excellent diversification

The 3 months correlation between FrontView and Sono is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and Sono Group NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sono Group NV 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 Sono Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sono Group NV has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and Sono Group go up and down completely randomly.

Pair Corralation between FrontView REIT, and Sono Group

Considering the 90-day investment horizon FrontView REIT, is expected to generate 0.24 times more return on investment than Sono Group. However, FrontView REIT, is 4.11 times less risky than Sono Group. It trades about 0.04 of its potential returns per unit of risk. Sono Group NV is currently generating about -0.04 per unit of risk. If you would invest  1,168  in FrontView REIT, on May 14, 2025 and sell it today you would earn a total of  43.00  from holding FrontView REIT, or generate 3.68% return on investment over 90 days.

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

FrontView REIT,  vs.  Sono Group NV

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

Sono Group NV

Risk-Adjusted Performance

Weakest

Over the last 90 days Sono Group NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with FrontView REIT, and Sono Group

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

The idea behind FrontView REIT, and Sono Group NV 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.

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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.