Correlation Between Armada Hoffler and One Liberty
Can any of the company-specific risk be diversified away by investing in both Armada Hoffler and One Liberty 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 One Liberty 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 One Liberty Properties, you can compare the effects of market volatilities on Armada Hoffler and One Liberty 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 One Liberty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hoffler and One Liberty.
Diversification Opportunities for Armada Hoffler and One Liberty
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Armada and One is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hoffler Properties and One Liberty Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Liberty Properties 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 One Liberty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Liberty Properties has no effect on the direction of Armada Hoffler i.e., Armada Hoffler and One Liberty go up and down completely randomly.
Pair Corralation between Armada Hoffler and One Liberty
Assuming the 90 days trading horizon Armada Hoffler Properties is expected to under-perform the One Liberty. But the preferred stock apears to be less risky and, when comparing its historical volatility, Armada Hoffler Properties is 1.4 times less risky than One Liberty. The preferred stock trades about -0.08 of its potential returns per unit of risk. The One Liberty Properties is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,592 in One Liberty Properties on November 1, 2024 and sell it today you would lose (25.00) from holding One Liberty Properties or give up 0.96% 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. One Liberty Properties
Performance |
| Timeline |
| Armada Hoffler Properties |
| One Liberty Properties |
Armada Hoffler and One Liberty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hoffler and One Liberty
The main advantage of trading using opposite Armada Hoffler and One Liberty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hoffler position performs unexpectedly, One Liberty 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 One Liberty will offset losses from the drop in One Liberty's long position.| Armada Hoffler vs. Artis REIT | Armada Hoffler vs. Ascott Residence Trust | Armada Hoffler vs. Armada Hflr Pr |
| One Liberty vs. Generationome Properties | One Liberty vs. Modiv Inc | One Liberty vs. Armada Hflr Pr | One Liberty 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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