Correlation Between Armada Hoffler and Precinct Properties
Can any of the company-specific risk be diversified away by investing in both Armada Hoffler and Precinct Properties 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 Precinct Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Armada Hoffler Properties and Precinct Properties New, you can compare the effects of market volatilities on Armada Hoffler and Precinct Properties 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 Precinct Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hoffler and Precinct Properties.
Diversification Opportunities for Armada Hoffler and Precinct Properties
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Armada and Precinct is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hoffler Properties and Precinct Properties New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Precinct Properties New 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 Properties are associated (or correlated) with Precinct Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Precinct Properties New has no effect on the direction of Armada Hoffler i.e., Armada Hoffler and Precinct Properties go up and down completely randomly.
Pair Corralation between Armada Hoffler and Precinct Properties
Assuming the 90 days trading horizon Armada Hoffler Properties is expected to under-perform the Precinct Properties. In addition to that, Armada Hoffler is 5.77 times more volatile than Precinct Properties New. It trades about -0.14 of its total potential returns per unit of risk. Precinct Properties New is currently generating about -0.13 per unit of volatility. If you would invest 68.00 in Precinct Properties New on October 26, 2024 and sell it today you would lose (1.00) from holding Precinct Properties New or give up 1.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Armada Hoffler Properties vs. Precinct Properties New
Performance |
| Timeline |
| Armada Hoffler Properties |
| Precinct Properties New |
Armada Hoffler and Precinct Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hoffler and Precinct Properties
The main advantage of trading using opposite Armada Hoffler and Precinct Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hoffler position performs unexpectedly, Precinct Properties 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 Precinct Properties will offset losses from the drop in Precinct Properties' long position.| Armada Hoffler vs. Artis REIT | Armada Hoffler vs. Ascott Residence Trust | Armada Hoffler vs. Armada Hflr Pr |
| Precinct Properties vs. Modiv Inc | Precinct Properties vs. Global Net Lease | Precinct Properties vs. NexPoint Diversified Real | Precinct Properties vs. Armada Hoffler Properties |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |