Correlation Between Armada Hflr and China Southern
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By analyzing existing cross correlation between Armada Hflr Pr and China Southern SSE, you can compare the effects of market volatilities on Armada Hflr and China Southern 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 China Southern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and China Southern.
Diversification Opportunities for Armada Hflr and China Southern
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Armada and China is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and China Southern SSE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Southern SSE 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 China Southern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Southern SSE has no effect on the direction of Armada Hflr i.e., Armada Hflr and China Southern go up and down completely randomly.
Pair Corralation between Armada Hflr and China Southern
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the China Southern. But the stock apears to be less risky and, when comparing its historical volatility, Armada Hflr Pr is 1.09 times less risky than China Southern. The stock trades about -0.02 of its potential returns per unit of risk. The China Southern SSE is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 184.00 in China Southern SSE on September 12, 2024 and sell it today you would earn a total of 21.00 from holding China Southern SSE or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.97% |
| Values | Daily Returns |
Armada Hflr Pr vs. China Southern SSE
Performance |
| Timeline |
| Armada Hflr Pr |
| China Southern SSE |
Armada Hflr and China Southern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and China Southern
The main advantage of trading using opposite Armada Hflr and China Southern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, China Southern 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 China Southern will offset losses from the drop in China Southern'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 |
| China Southern vs. Shenzhen MTC Co | China Southern vs. Ming Yang Smart | China Southern vs. Changzhou Almaden Co | China Southern vs. 159681 |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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