Correlation Between Armada Hoffler and Inland Real
Can any of the company-specific risk be diversified away by investing in both Armada Hoffler and Inland Real 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 Inland Real 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 Inland Real Estateome, you can compare the effects of market volatilities on Armada Hoffler and Inland Real 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 Inland Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hoffler and Inland Real.
Diversification Opportunities for Armada Hoffler and Inland Real
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Armada and Inland is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hoffler Properties and Inland Real Estateome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inland Real Estateome 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 Inland Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inland Real Estateome has no effect on the direction of Armada Hoffler i.e., Armada Hoffler and Inland Real go up and down completely randomly.
Pair Corralation between Armada Hoffler and Inland Real
If you would invest 2,168 in Armada Hoffler Properties on November 28, 2024 and sell it today you would earn a total of 61.00 from holding Armada Hoffler Properties or generate 2.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Armada Hoffler Properties vs. Inland Real Estateome
Performance |
| Timeline |
| Armada Hoffler Properties |
| Inland Real Estateome |
Armada Hoffler and Inland Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hoffler and Inland Real
The main advantage of trading using opposite Armada Hoffler and Inland Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hoffler position performs unexpectedly, Inland Real 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 Inland Real will offset losses from the drop in Inland Real's long position.| Armada Hoffler vs. Artis REIT | Armada Hoffler vs. Ascott Residence Trust | Armada Hoffler vs. Armada Hflr Pr |
| Inland Real vs. Lend Lease Group | Inland Real vs. Stratus Properties | Inland Real vs. Comstock Holding Companies | Inland Real vs. St Joe Company |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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