Correlation Between ATLAND SA and ARMADA HOFFLER
Can any of the company-specific risk be diversified away by investing in both ATLAND SA and ARMADA HOFFLER 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 ATLAND SA and ARMADA HOFFLER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATLAND SA INH and ARMADA HOFFLER PR, you can compare the effects of market volatilities on ATLAND SA and ARMADA HOFFLER 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 ATLAND SA with a short position of ARMADA HOFFLER. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATLAND SA and ARMADA HOFFLER.
Diversification Opportunities for ATLAND SA and ARMADA HOFFLER
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between ATLAND and ARMADA is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding ATLAND SA INH and ARMADA HOFFLER PR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ARMADA HOFFLER PR and ATLAND SA 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 ATLAND SA INH are associated (or correlated) with ARMADA HOFFLER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ARMADA HOFFLER PR has no effect on the direction of ATLAND SA i.e., ATLAND SA and ARMADA HOFFLER go up and down completely randomly.
Pair Corralation between ATLAND SA and ARMADA HOFFLER
Assuming the 90 days horizon ATLAND SA INH is expected to generate 0.79 times more return on investment than ARMADA HOFFLER. However, ATLAND SA INH is 1.27 times less risky than ARMADA HOFFLER. It trades about 0.05 of its potential returns per unit of risk. ARMADA HOFFLER PR is currently generating about 0.04 per unit of risk. 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 |
ATLAND SA INH vs. ARMADA HOFFLER PR
Performance |
| Timeline |
| ATLAND SA INH |
| ARMADA HOFFLER PR |
ATLAND SA and ARMADA HOFFLER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATLAND SA and ARMADA HOFFLER
The main advantage of trading using opposite ATLAND SA and ARMADA HOFFLER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATLAND SA position performs unexpectedly, ARMADA HOFFLER 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 ARMADA HOFFLER will offset losses from the drop in ARMADA HOFFLER's long position.| ATLAND SA vs. Electronic Arts | ATLAND SA vs. Nucletron Electronic Aktiengesellschaft | ATLAND SA vs. PARKEN Sport Entertainment | ATLAND SA vs. TT Electronics PLC |
| ARMADA HOFFLER vs. LondonMetric Property Plc | ARMADA HOFFLER vs. LAR ESPREESTSOCIMI EO2 | ARMADA HOFFLER vs. ATLAND SA INH |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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