Correlation Between Armada Hoffler and Saul Centers
Can any of the company-specific risk be diversified away by investing in both Armada Hoffler and Saul Centers 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 Saul Centers 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 Saul Centers, you can compare the effects of market volatilities on Armada Hoffler and Saul Centers 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 Saul Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hoffler and Saul Centers.
Diversification Opportunities for Armada Hoffler and Saul Centers
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Armada and Saul is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hoffler Properties and Saul Centers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saul Centers 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 Saul Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saul Centers has no effect on the direction of Armada Hoffler i.e., Armada Hoffler and Saul Centers go up and down completely randomly.
Pair Corralation between Armada Hoffler and Saul Centers
If you would invest (100.00) in Saul Centers on October 24, 2024 and sell it today you would earn a total of 100.00 from holding Saul Centers or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Armada Hoffler Properties vs. Saul Centers
Performance |
| Timeline |
| Armada Hoffler Properties |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Saul Centers |
Armada Hoffler and Saul Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hoffler and Saul Centers
The main advantage of trading using opposite Armada Hoffler and Saul Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hoffler position performs unexpectedly, Saul Centers 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 Saul Centers will offset losses from the drop in Saul Centers' long position.The idea behind Armada Hoffler Properties and Saul Centers pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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