Correlation Between Armada Hflr and AD Plastik
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and AD Plastik 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 AD Plastik 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 AD Plastik dd, you can compare the effects of market volatilities on Armada Hflr and AD Plastik 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 AD Plastik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and AD Plastik.
Diversification Opportunities for Armada Hflr and AD Plastik
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Armada and ADPL is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and AD Plastik dd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AD Plastik dd 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 AD Plastik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AD Plastik dd has no effect on the direction of Armada Hflr i.e., Armada Hflr and AD Plastik go up and down completely randomly.
Pair Corralation between Armada Hflr and AD Plastik
Considering the 90-day investment horizon Armada Hflr Pr is expected to generate 0.49 times more return on investment than AD Plastik. However, Armada Hflr Pr is 2.04 times less risky than AD Plastik. It trades about -0.07 of its potential returns per unit of risk. AD Plastik dd is currently generating about -0.35 per unit of risk. If you would invest 1,102 in Armada Hflr Pr on September 14, 2024 and sell it today you would lose (14.00) from holding Armada Hflr Pr or give up 1.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Armada Hflr Pr vs. AD Plastik dd
Performance |
| Timeline |
| Armada Hflr Pr |
| AD Plastik dd |
Armada Hflr and AD Plastik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and AD Plastik
The main advantage of trading using opposite Armada Hflr and AD Plastik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, AD Plastik 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 AD Plastik will offset losses from the drop in AD Plastik'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 |
| AD Plastik vs. Hrvatska Postanska Banka | AD Plastik vs. Dalekovod dd | AD Plastik vs. Podravka Prehrambena Industrija | AD Plastik vs. Adris Grupa dd |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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