Correlation Between Armada Hflr and Thor Industries
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Thor Industries 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 Thor Industries 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 Thor Industries, you can compare the effects of market volatilities on Armada Hflr and Thor Industries 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 Thor Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Thor Industries.
Diversification Opportunities for Armada Hflr and Thor Industries
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Armada and Thor is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Thor Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thor Industries 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 Thor Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thor Industries has no effect on the direction of Armada Hflr i.e., Armada Hflr and Thor Industries go up and down completely randomly.
Pair Corralation between Armada Hflr and Thor Industries
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Thor Industries. But the stock apears to be less risky and, when comparing its historical volatility, Armada Hflr Pr is 1.76 times less risky than Thor Industries. The stock trades about -0.25 of its potential returns per unit of risk. The Thor Industries is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 10,787 in Thor Industries on September 20, 2024 and sell it today you would lose (572.00) from holding Thor Industries or give up 5.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Armada Hflr Pr vs. Thor Industries
Performance |
| Timeline |
| Armada Hflr Pr |
| Thor Industries |
Armada Hflr and Thor Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Thor Industries
The main advantage of trading using opposite Armada Hflr and Thor Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Thor Industries 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 Thor Industries will offset losses from the drop in Thor Industries' 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 |
| Thor Industries vs. Dalata Hotel Group | Thor Industries vs. bet at home AG | Thor Industries vs. Melia Hotels | Thor Industries vs. Capital Drilling |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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