Correlation Between ARMADA HOFFLER and ATLAND SA
Can any of the company-specific risk be diversified away by investing in both ARMADA HOFFLER and ATLAND SA 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 ARMADA HOFFLER and ATLAND SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ARMADA HOFFLER PR and ATLAND SA INH, you can compare the effects of market volatilities on ARMADA HOFFLER and ATLAND SA 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 ARMADA HOFFLER with a short position of ATLAND SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ARMADA HOFFLER and ATLAND SA.
Diversification Opportunities for ARMADA HOFFLER and ATLAND SA
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between ARMADA and ATLAND is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding ARMADA HOFFLER PR and ATLAND SA INH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATLAND SA INH and ARMADA HOFFLER 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 ARMADA HOFFLER PR are associated (or correlated) with ATLAND SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATLAND SA INH has no effect on the direction of ARMADA HOFFLER i.e., ARMADA HOFFLER and ATLAND SA go up and down completely randomly.
Pair Corralation between ARMADA HOFFLER and ATLAND SA
Assuming the 90 days horizon ARMADA HOFFLER is expected to generate 1.09 times less return on investment than ATLAND SA. In addition to that, ARMADA HOFFLER is 1.27 times more volatile than ATLAND SA INH. It trades about 0.04 of its total potential returns per unit of risk. ATLAND SA INH is currently generating about 0.05 per unit of volatility. If you would invest 3,491 in ATLAND SA INH on September 14, 2024 and sell it today you would earn a total of 669.00 from holding ATLAND SA INH or generate 19.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ARMADA HOFFLER PR vs. ATLAND SA INH
Performance |
| Timeline |
| ARMADA HOFFLER PR |
| ATLAND SA INH |
ARMADA HOFFLER and ATLAND SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ARMADA HOFFLER and ATLAND SA
The main advantage of trading using opposite ARMADA HOFFLER and ATLAND SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ARMADA HOFFLER position performs unexpectedly, ATLAND SA 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 ATLAND SA will offset losses from the drop in ATLAND SA's long position.| ARMADA HOFFLER vs. LondonMetric Property Plc | ARMADA HOFFLER vs. LAR ESPREESTSOCIMI EO2 | ARMADA HOFFLER vs. ATLAND SA INH |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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