Correlation Between Armada Hoffler and PS Business
Can any of the company-specific risk be diversified away by investing in both Armada Hoffler and PS Business 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 PS Business 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 PS Business Parks, you can compare the effects of market volatilities on Armada Hoffler and PS Business 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 PS Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hoffler and PS Business.
Diversification Opportunities for Armada Hoffler and PS Business
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Armada and PSBZP is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hoffler Properties and PS Business Parks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PS Business Parks 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 PS Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PS Business Parks has no effect on the direction of Armada Hoffler i.e., Armada Hoffler and PS Business go up and down completely randomly.
Pair Corralation between Armada Hoffler and PS Business
Assuming the 90 days trading horizon Armada Hoffler is expected to generate 3.81 times less return on investment than PS Business. But when comparing it to its historical volatility, Armada Hoffler Properties is 2.83 times less risky than PS Business. It trades about 0.04 of its potential returns per unit of risk. PS Business Parks is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,122 in PS Business Parks on September 3, 2024 and sell it today you would earn a total of 213.00 from holding PS Business Parks or generate 18.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 27.79% |
| Values | Daily Returns |
Armada Hoffler Properties vs. PS Business Parks
Performance |
| Timeline |
| Armada Hoffler Properties |
| PS Business Parks |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Armada Hoffler and PS Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hoffler and PS Business
The main advantage of trading using opposite Armada Hoffler and PS Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hoffler position performs unexpectedly, PS Business 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 PS Business will offset losses from the drop in PS Business' long position.| Armada Hoffler vs. Artis REIT | Armada Hoffler vs. Ascott Residence Trust | Armada Hoffler vs. Armada Hflr Pr | Armada Hoffler vs. Aquagold International |
| PS Business vs. Air Lease | PS Business vs. Copa Holdings SA | PS Business vs. China Aircraft Leasing | PS Business vs. Valneva SE ADR |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |