Correlation Between Armada Hflr and Genic
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Genic 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 Genic 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 Genic Co, you can compare the effects of market volatilities on Armada Hflr and Genic 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 Genic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Genic.
Diversification Opportunities for Armada Hflr and Genic
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Armada and Genic is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Genic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genic 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 Genic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genic has no effect on the direction of Armada Hflr i.e., Armada Hflr and Genic go up and down completely randomly.
Pair Corralation between Armada Hflr and Genic
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Genic. But the stock apears to be less risky and, when comparing its historical volatility, Armada Hflr Pr is 3.52 times less risky than Genic. The stock trades about -0.03 of its potential returns per unit of risk. The Genic Co is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 367,000 in Genic Co on September 25, 2024 and sell it today you would earn a total of 1,933,000 from holding Genic Co or generate 526.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.76% |
| Values | Daily Returns |
Armada Hflr Pr vs. Genic Co
Performance |
| Timeline |
| Armada Hflr Pr |
| Genic |
Armada Hflr and Genic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Genic
The main advantage of trading using opposite Armada Hflr and Genic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Genic 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 Genic will offset losses from the drop in Genic'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 |
| Genic vs. FoodNamoo | Genic vs. Polaris Office Corp | Genic vs. Korea Electronic Certification | Genic vs. Wave Electronics Co |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |