Correlation Between Armada Hflr and AirAsia X
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and AirAsia X 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 AirAsia X 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 AirAsia X Bhd, you can compare the effects of market volatilities on Armada Hflr and AirAsia X 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 AirAsia X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and AirAsia X.
Diversification Opportunities for Armada Hflr and AirAsia X
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Armada and AirAsia is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and AirAsia X Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AirAsia X Bhd 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 AirAsia X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AirAsia X Bhd has no effect on the direction of Armada Hflr i.e., Armada Hflr and AirAsia X go up and down completely randomly.
Pair Corralation between Armada Hflr and AirAsia X
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the AirAsia X. But the stock apears to be less risky and, when comparing its historical volatility, Armada Hflr Pr is 3.1 times less risky than AirAsia X. The stock trades about -0.03 of its potential returns per unit of risk. The AirAsia X Bhd is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 190.00 in AirAsia X Bhd on September 16, 2024 and sell it today you would lose (1.00) from holding AirAsia X Bhd or give up 0.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Armada Hflr Pr vs. AirAsia X Bhd
Performance |
| Timeline |
| Armada Hflr Pr |
| AirAsia X Bhd |
Armada Hflr and AirAsia X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and AirAsia X
The main advantage of trading using opposite Armada Hflr and AirAsia X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, AirAsia X 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 AirAsia X will offset losses from the drop in AirAsia X'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 |
| AirAsia X vs. Public Packages Holdings | AirAsia X vs. Binasat Communications Bhd | AirAsia X vs. Awanbiru Technology Bhd | AirAsia X vs. Sports Toto Berhad |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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