Correlation Between Armada Hflr and Avenira
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Avenira 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 Avenira 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 Avenira, you can compare the effects of market volatilities on Armada Hflr and Avenira 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 Avenira. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Avenira.
Diversification Opportunities for Armada Hflr and Avenira
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Armada and Avenira is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Avenira in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avenira 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 Avenira. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avenira has no effect on the direction of Armada Hflr i.e., Armada Hflr and Avenira go up and down completely randomly.
Pair Corralation between Armada Hflr and Avenira
Considering the 90-day investment horizon Armada Hflr is expected to generate 8.12 times less return on investment than Avenira. But when comparing it to its historical volatility, Armada Hflr Pr is 5.16 times less risky than Avenira. It trades about 0.02 of its potential returns per unit of risk. Avenira is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1.80 in Avenira on September 14, 2024 and sell it today you would lose (0.80) from holding Avenira or give up 44.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.4% |
| Values | Daily Returns |
Armada Hflr Pr vs. Avenira
Performance |
| Timeline |
| Armada Hflr Pr |
| Avenira |
Armada Hflr and Avenira Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Avenira
The main advantage of trading using opposite Armada Hflr and Avenira positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Avenira 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 Avenira will offset losses from the drop in Avenira'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 |
| Avenira vs. Northern Star Resources | Avenira vs. Evolution Mining | Avenira vs. Bluescope Steel | Avenira vs. Sandfire Resources NL |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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