Correlation Between Bank of the and Filinvest REIT

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

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

Diversification Opportunities for Bank of the and Filinvest REIT

-0.71

Correlation Coefficient

Bank of the  Filinvest REIT

Pay attention - limited upside

The 3 months correlation between Bank and Filinvest is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Bank of the and Filinvest REIT Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Filinvest REIT Corp and Bank of the 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 Bank of the are associated (or correlated) with Filinvest REIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Filinvest REIT Corp has no effect on the direction of Bank of the i.e., Bank of the and Filinvest REIT go up and down completely randomly.

Pair Corralation between Bank of the and Filinvest REIT

Assuming the 90 days trading horizon Bank of the is expected to under-perform the Filinvest REIT. In addition to that, Bank of the is 2.69 times more volatile than Filinvest REIT Corp. It trades about -0.07 of its total potential returns per unit of risk. Filinvest REIT Corp is currently generating about 0.23 per unit of volatility. If you would invest  307.00  in Filinvest REIT Corp on April 21, 2025 and sell it today you would earn a total of  30.00  from holding Filinvest REIT Corp or generate 9.77% return on investment over 90 days.

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

Bank of the  vs.  Filinvest REIT Corp

Bank of the

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bank of the has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Filinvest REIT Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Filinvest REIT Corp are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain essential indicators, Filinvest REIT may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Bank of the and Filinvest REIT

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

The idea behind Bank of the and Filinvest REIT Corp 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.