Correlation Between Agree Realty and Armada Hflr
Can any of the company-specific risk be diversified away by investing in both Agree Realty and Armada Hflr 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 Agree Realty and Armada Hflr into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agree Realty and Armada Hflr Pr, you can compare the effects of market volatilities on Agree Realty and Armada Hflr 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 Agree Realty with a short position of Armada Hflr. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agree Realty and Armada Hflr.
Diversification Opportunities for Agree Realty and Armada Hflr
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Agree and Armada is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Agree Realty and Armada Hflr Pr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Armada Hflr Pr and Agree 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 Agree Realty are associated (or correlated) with Armada Hflr. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Armada Hflr Pr has no effect on the direction of Agree Realty i.e., Agree Realty and Armada Hflr go up and down completely randomly.
Pair Corralation between Agree Realty and Armada Hflr
Considering the 90-day investment horizon Agree Realty is expected to generate 0.49 times more return on investment than Armada Hflr. However, Agree Realty is 2.03 times less risky than Armada Hflr. It trades about -0.1 of its potential returns per unit of risk. Armada Hflr Pr is currently generating about -0.38 per unit of risk. If you would invest 7,566 in Agree Realty on January 10, 2025 and sell it today you would lose (273.00) from holding Agree Realty or give up 3.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agree Realty vs. Armada Hflr Pr
Performance |
| Timeline |
| Agree Realty |
| Armada Hflr Pr |
Agree Realty and Armada Hflr Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agree Realty and Armada Hflr
The main advantage of trading using opposite Agree Realty and Armada Hflr positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agree Realty position performs unexpectedly, Armada Hflr 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 Hflr will offset losses from the drop in Armada Hflr's long position.| Agree Realty vs. Federal Realty Investment | Agree Realty vs. Regency Centers | Agree Realty vs. Netstreit Corp | Agree Realty vs. Kimco Realty |
| Armada Hflr vs. Modiv Inc | Armada Hflr vs. Precinct Properties New | Armada Hflr vs. Global Net Lease | Armada Hflr vs. NexPoint Diversified Real |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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