Correlation Between Arbor Realty and Voyager Acquisition
Can any of the company-specific risk be diversified away by investing in both Arbor Realty and Voyager Acquisition 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 Voyager Acquisition 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 Voyager Acquisition Corp, you can compare the effects of market volatilities on Arbor Realty and Voyager Acquisition 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 Voyager Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arbor Realty and Voyager Acquisition.
Diversification Opportunities for Arbor Realty and Voyager Acquisition
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Arbor and Voyager is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Arbor Realty Trust and Voyager Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voyager Acquisition Corp 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 Voyager Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voyager Acquisition Corp has no effect on the direction of Arbor Realty i.e., Arbor Realty and Voyager Acquisition go up and down completely randomly.
Pair Corralation between Arbor Realty and Voyager Acquisition
Considering the 90-day investment horizon Arbor Realty Trust is expected to under-perform the Voyager Acquisition. In addition to that, Arbor Realty is 6.21 times more volatile than Voyager Acquisition Corp. It trades about -0.18 of its total potential returns per unit of risk. Voyager Acquisition Corp is currently generating about 0.19 per unit of volatility. If you would invest 1,002 in Voyager Acquisition Corp on October 25, 2024 and sell it today you would earn a total of 9.00 from holding Voyager Acquisition Corp or generate 0.9% 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. Voyager Acquisition Corp
Performance |
| Timeline |
| Arbor Realty Trust |
| Voyager Acquisition Corp |
Arbor Realty and Voyager Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arbor Realty and Voyager Acquisition
The main advantage of trading using opposite Arbor Realty and Voyager Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arbor Realty position performs unexpectedly, Voyager Acquisition 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 Voyager Acquisition will offset losses from the drop in Voyager Acquisition'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 |
| Voyager Acquisition vs. BorgWarner | Voyager Acquisition vs. Li Auto | Voyager Acquisition vs. Digi International | Voyager Acquisition vs. Thor Industries |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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