Correlation Between Armada Hflr and WAGNERS HOLDING
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and WAGNERS HOLDING 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 WAGNERS HOLDING 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 WAGNERS HOLDING LTD, you can compare the effects of market volatilities on Armada Hflr and WAGNERS HOLDING 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 WAGNERS HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and WAGNERS HOLDING.
Diversification Opportunities for Armada Hflr and WAGNERS HOLDING
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Armada and WAGNERS is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and WAGNERS HOLDING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WAGNERS HOLDING LTD 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 WAGNERS HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WAGNERS HOLDING LTD has no effect on the direction of Armada Hflr i.e., Armada Hflr and WAGNERS HOLDING go up and down completely randomly.
Pair Corralation between Armada Hflr and WAGNERS HOLDING
Considering the 90-day investment horizon Armada Hflr is expected to generate 11.88 times less return on investment than WAGNERS HOLDING. But when comparing it to its historical volatility, Armada Hflr Pr is 2.46 times less risky than WAGNERS HOLDING. It trades about 0.01 of its potential returns per unit of risk. WAGNERS HOLDING LTD is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 48.00 in WAGNERS HOLDING LTD on September 26, 2024 and sell it today you would earn a total of 34.00 from holding WAGNERS HOLDING LTD or generate 70.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.22% |
| Values | Daily Returns |
Armada Hflr Pr vs. WAGNERS HOLDING LTD
Performance |
| Timeline |
| Armada Hflr Pr |
| WAGNERS HOLDING LTD |
Armada Hflr and WAGNERS HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and WAGNERS HOLDING
The main advantage of trading using opposite Armada Hflr and WAGNERS HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, WAGNERS HOLDING 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 WAGNERS HOLDING will offset losses from the drop in WAGNERS HOLDING'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 |
| WAGNERS HOLDING vs. ALEFARM BREWING DK 05 | WAGNERS HOLDING vs. Chongqing Machinery Electric | WAGNERS HOLDING vs. Corporate Travel Management | WAGNERS HOLDING vs. CeoTronics AG |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |