Correlation Between Armada Hflr and Shanxi Tond
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By analyzing existing cross correlation between Armada Hflr Pr and Shanxi Tond Chemical, you can compare the effects of market volatilities on Armada Hflr and Shanxi Tond 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 Hflr with a short position of Shanxi Tond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Shanxi Tond.
Diversification Opportunities for Armada Hflr and Shanxi Tond
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Armada and Shanxi is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Shanxi Tond Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanxi Tond Chemical and Armada Hflr 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 Hflr Pr are associated (or correlated) with Shanxi Tond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanxi Tond Chemical has no effect on the direction of Armada Hflr i.e., Armada Hflr and Shanxi Tond go up and down completely randomly.
Pair Corralation between Armada Hflr and Shanxi Tond
Considering the 90-day investment horizon Armada Hflr Pr is expected to generate 0.66 times more return on investment than Shanxi Tond. However, Armada Hflr Pr is 1.51 times less risky than Shanxi Tond. It trades about 0.02 of its potential returns per unit of risk. Shanxi Tond Chemical is currently generating about -0.02 per unit of risk. If you would invest 957.00 in Armada Hflr Pr on September 26, 2024 and sell it today you would earn a total of 66.00 from holding Armada Hflr Pr or generate 6.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.82% |
| Values | Daily Returns |
Armada Hflr Pr vs. Shanxi Tond Chemical
Performance |
| Timeline |
| Armada Hflr Pr |
| Shanxi Tond Chemical |
Armada Hflr and Shanxi Tond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Shanxi Tond
The main advantage of trading using opposite Armada Hflr and Shanxi Tond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Shanxi Tond 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 Shanxi Tond will offset losses from the drop in Shanxi Tond's long position.| Armada Hflr vs. Realty Income | Armada Hflr vs. Park Hotels Resorts | Armada Hflr vs. Power REIT | Armada Hflr vs. Urban Edge Properties |
| Shanxi Tond vs. Zijin Mining Group | Shanxi Tond vs. Wanhua Chemical Group | Shanxi Tond vs. Baoshan Iron Steel | Shanxi Tond vs. Shandong Gold Mining |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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