Correlation Between Armada Hflr and Wenzhou Hongfeng
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By analyzing existing cross correlation between Armada Hflr Pr and Wenzhou Hongfeng Electrical, you can compare the effects of market volatilities on Armada Hflr and Wenzhou Hongfeng 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 Wenzhou Hongfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Wenzhou Hongfeng.
Diversification Opportunities for Armada Hflr and Wenzhou Hongfeng
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Armada and Wenzhou is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Wenzhou Hongfeng Electrical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wenzhou Hongfeng Ele 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 Wenzhou Hongfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wenzhou Hongfeng Ele has no effect on the direction of Armada Hflr i.e., Armada Hflr and Wenzhou Hongfeng go up and down completely randomly.
Pair Corralation between Armada Hflr and Wenzhou Hongfeng
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Wenzhou Hongfeng. But the stock apears to be less risky and, when comparing its historical volatility, Armada Hflr Pr is 1.62 times less risky than Wenzhou Hongfeng. The stock trades about -0.15 of its potential returns per unit of risk. The Wenzhou Hongfeng Electrical is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 542.00 in Wenzhou Hongfeng Electrical on December 3, 2024 and sell it today you would earn a total of 63.00 from holding Wenzhou Hongfeng Electrical or generate 11.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 92.5% |
| Values | Daily Returns |
Armada Hflr Pr vs. Wenzhou Hongfeng Electrical
Performance |
| Timeline |
| Armada Hflr Pr |
| Wenzhou Hongfeng Ele |
Armada Hflr and Wenzhou Hongfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Wenzhou Hongfeng
The main advantage of trading using opposite Armada Hflr and Wenzhou Hongfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Wenzhou Hongfeng 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 Wenzhou Hongfeng will offset losses from the drop in Wenzhou Hongfeng'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 |
| Wenzhou Hongfeng vs. XiAn Dagang Road | Wenzhou Hongfeng vs. Shanghai Jinfeng Wine | Wenzhou Hongfeng vs. Metro Investment Development | Wenzhou Hongfeng vs. Anshan Senyuan Road |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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