Correlation Between Armada Hflr and Crescendo Bhd
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Crescendo Bhd 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 Crescendo Bhd 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 Crescendo Bhd, you can compare the effects of market volatilities on Armada Hflr and Crescendo Bhd 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 Crescendo Bhd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Crescendo Bhd.
Diversification Opportunities for Armada Hflr and Crescendo Bhd
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Armada and Crescendo is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Crescendo Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crescendo 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 Crescendo Bhd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crescendo Bhd has no effect on the direction of Armada Hflr i.e., Armada Hflr and Crescendo Bhd go up and down completely randomly.
Pair Corralation between Armada Hflr and Crescendo Bhd
Considering the 90-day investment horizon Armada Hflr is expected to generate 13.86 times less return on investment than Crescendo Bhd. But when comparing it to its historical volatility, Armada Hflr Pr is 1.79 times less risky than Crescendo Bhd. It trades about 0.02 of its potential returns per unit of risk. Crescendo Bhd is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 35.00 in Crescendo Bhd on September 14, 2024 and sell it today you would earn a total of 110.00 from holding Crescendo Bhd or generate 314.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 87.65% |
| Values | Daily Returns |
Armada Hflr Pr vs. Crescendo Bhd
Performance |
| Timeline |
| Armada Hflr Pr |
| Crescendo Bhd |
Armada Hflr and Crescendo Bhd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Crescendo Bhd
The main advantage of trading using opposite Armada Hflr and Crescendo Bhd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Crescendo Bhd 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 Crescendo Bhd will offset losses from the drop in Crescendo Bhd'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 |
| Crescendo Bhd vs. Malayan Banking Bhd | Crescendo Bhd vs. Public Bank Bhd | Crescendo Bhd vs. Petronas Chemicals Group | Crescendo Bhd vs. Tenaga Nasional Bhd |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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