Correlation Between Armada Hflr and Focus Home
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Focus Home 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 Focus Home 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 Focus Home Interactive, you can compare the effects of market volatilities on Armada Hflr and Focus Home 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 Focus Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Focus Home.
Diversification Opportunities for Armada Hflr and Focus Home
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Armada and Focus is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Focus Home Interactive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Focus Home Interactive 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 Focus Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Focus Home Interactive has no effect on the direction of Armada Hflr i.e., Armada Hflr and Focus Home go up and down completely randomly.
Pair Corralation between Armada Hflr and Focus Home
Considering the 90-day investment horizon Armada Hflr Pr is expected to generate 0.36 times more return on investment than Focus Home. However, Armada Hflr Pr is 2.75 times less risky than Focus Home. It trades about 0.02 of its potential returns per unit of risk. Focus Home Interactive is currently generating about -0.02 per unit of risk. If you would invest 1,016 in Armada Hflr Pr on September 14, 2024 and sell it today you would earn a total of 74.50 from holding Armada Hflr Pr or generate 7.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.21% |
| Values | Daily Returns |
Armada Hflr Pr vs. Focus Home Interactive
Performance |
| Timeline |
| Armada Hflr Pr |
| Focus Home Interactive |
Armada Hflr and Focus Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Focus Home
The main advantage of trading using opposite Armada Hflr and Focus Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Focus Home 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 Focus Home will offset losses from the drop in Focus Home's 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 |
| Focus Home vs. NEXON Co | Focus Home vs. Take Two Interactive Software | Focus Home vs. Superior Plus Corp | Focus Home vs. SIVERS SEMICONDUCTORS AB |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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