Correlation Between Armada Hflr and Humax Holdings
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Humax Holdings 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 Hflr and Humax Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Armada Hflr Pr and Humax Holdings Co, you can compare the effects of market volatilities on Armada Hflr and Humax Holdings 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 Humax Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Humax Holdings.
Diversification Opportunities for Armada Hflr and Humax Holdings
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Armada and Humax is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Humax Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humax Holdings 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 Humax Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humax Holdings has no effect on the direction of Armada Hflr i.e., Armada Hflr and Humax Holdings go up and down completely randomly.
Pair Corralation between Armada Hflr and Humax Holdings
Considering the 90-day investment horizon Armada Hflr Pr is expected to generate 0.19 times more return on investment than Humax Holdings. However, Armada Hflr Pr is 5.37 times less risky than Humax Holdings. It trades about -0.06 of its potential returns per unit of risk. Humax Holdings Co is currently generating about -0.45 per unit of risk. If you would invest 1,100 in Armada Hflr Pr on September 13, 2024 and sell it today you would lose (12.00) from holding Armada Hflr Pr or give up 1.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Armada Hflr Pr vs. Humax Holdings Co
Performance |
| Timeline |
| Armada Hflr Pr |
| Humax Holdings |
Armada Hflr and Humax Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Humax Holdings
The main advantage of trading using opposite Armada Hflr and Humax Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Humax Holdings 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 Humax Holdings will offset losses from the drop in Humax Holdings' long position.| Armada Hflr vs. Modiv Inc | Armada Hflr vs. Precinct Properties New | Armada Hflr vs. Global Net Lease | Armada Hflr vs. NexPoint Diversified Real |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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