Correlation Between Armada Hflr and Auxly Cannabis
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Auxly Cannabis 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 Auxly Cannabis 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 Auxly Cannabis Group, you can compare the effects of market volatilities on Armada Hflr and Auxly Cannabis 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 Auxly Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Auxly Cannabis.
Diversification Opportunities for Armada Hflr and Auxly Cannabis
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Armada and Auxly is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Auxly Cannabis Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auxly Cannabis Group 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 Auxly Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auxly Cannabis Group has no effect on the direction of Armada Hflr i.e., Armada Hflr and Auxly Cannabis go up and down completely randomly.
Pair Corralation between Armada Hflr and Auxly Cannabis
Considering the 90-day investment horizon Armada Hflr is expected to generate 1690.25 times less return on investment than Auxly Cannabis. But when comparing it to its historical volatility, Armada Hflr Pr is 21.73 times less risky than Auxly Cannabis. It trades about 0.0 of its potential returns per unit of risk. Auxly Cannabis Group is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 0.85 in Auxly Cannabis Group on September 12, 2024 and sell it today you would earn a total of 0.21 from holding Auxly Cannabis Group or generate 24.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.32% |
| Values | Daily Returns |
Armada Hflr Pr vs. Auxly Cannabis Group
Performance |
| Timeline |
| Armada Hflr Pr |
| Auxly Cannabis Group |
Armada Hflr and Auxly Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Auxly Cannabis
The main advantage of trading using opposite Armada Hflr and Auxly Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Auxly Cannabis 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 Auxly Cannabis will offset losses from the drop in Auxly Cannabis' 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 |
| Auxly Cannabis vs. Sanyo Chemical Industries | Auxly Cannabis vs. TIANDE CHEMICAL | Auxly Cannabis vs. Charter Communications | Auxly Cannabis vs. Cogent Communications Holdings |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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