Correlation Between Arbor Realty and SK Growth
Can any of the company-specific risk be diversified away by investing in both Arbor Realty and SK Growth 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 Arbor Realty and SK Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arbor Realty Trust and SK Growth Opportunities, you can compare the effects of market volatilities on Arbor Realty and SK Growth 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 Arbor Realty with a short position of SK Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arbor Realty and SK Growth.
Diversification Opportunities for Arbor Realty and SK Growth
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Arbor and SKGR is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Arbor Realty Trust and SK Growth Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SK Growth Opportunities and Arbor Realty 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 Arbor Realty Trust are associated (or correlated) with SK Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SK Growth Opportunities has no effect on the direction of Arbor Realty i.e., Arbor Realty and SK Growth go up and down completely randomly.
Pair Corralation between Arbor Realty and SK Growth
If you would invest 1,163 in SK Growth Opportunities on October 25, 2024 and sell it today you would earn a total of 0.00 from holding SK Growth Opportunities or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arbor Realty Trust vs. SK Growth Opportunities
Performance |
| Timeline |
| Arbor Realty Trust |
| SK Growth Opportunities |
Arbor Realty and SK Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arbor Realty and SK Growth
The main advantage of trading using opposite Arbor Realty and SK Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arbor Realty position performs unexpectedly, SK Growth 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 SK Growth will offset losses from the drop in SK Growth's long position.| Arbor Realty vs. Starwood Property Trust | Arbor Realty vs. Ready Capital Corp | Arbor Realty vs. Two Harbors Investments | Arbor Realty vs. AGNC Investment Corp |
| SK Growth vs. Four Leaf Acquisition | SK Growth vs. WinVest Acquisition Corp | SK Growth vs. Alpha One | SK Growth vs. Manaris Corp |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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