Correlation Between Armada Hflr and Sinotrans
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By analyzing existing cross correlation between Armada Hflr Pr and Sinotrans Ltd Class, you can compare the effects of market volatilities on Armada Hflr and Sinotrans 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 Sinotrans. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Sinotrans.
Diversification Opportunities for Armada Hflr and Sinotrans
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Armada and Sinotrans is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Sinotrans Ltd Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinotrans Class 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 Sinotrans. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinotrans Class has no effect on the direction of Armada Hflr i.e., Armada Hflr and Sinotrans go up and down completely randomly.
Pair Corralation between Armada Hflr and Sinotrans
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Sinotrans. But the stock apears to be less risky and, when comparing its historical volatility, Armada Hflr Pr is 1.11 times less risky than Sinotrans. The stock trades about -0.17 of its potential returns per unit of risk. The Sinotrans Ltd Class is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 522.00 in Sinotrans Ltd Class on October 15, 2024 and sell it today you would lose (15.00) from holding Sinotrans Ltd Class or give up 2.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.31% |
| Values | Daily Returns |
Armada Hflr Pr vs. Sinotrans Ltd Class
Performance |
| Timeline |
| Armada Hflr Pr |
| Sinotrans Class |
Armada Hflr and Sinotrans Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Sinotrans
The main advantage of trading using opposite Armada Hflr and Sinotrans positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Sinotrans 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 Sinotrans will offset losses from the drop in Sinotrans' 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 |
| Sinotrans vs. Nanjing Putian Telecommunications | Sinotrans vs. Guangxi Wuzhou Communications | Sinotrans vs. China Mobile Limited | Sinotrans vs. China National Software |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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