Correlation Between Armada Hflr and Amazon
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Amazon 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 Amazon 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 Amazon Inc, you can compare the effects of market volatilities on Armada Hflr and Amazon 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 Amazon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Amazon.
Diversification Opportunities for Armada Hflr and Amazon
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Armada and Amazon is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Amazon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amazon Inc 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 Amazon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amazon Inc has no effect on the direction of Armada Hflr i.e., Armada Hflr and Amazon go up and down completely randomly.
Pair Corralation between Armada Hflr and Amazon
Considering the 90-day investment horizon Armada Hflr is expected to generate 17.58 times less return on investment than Amazon. But when comparing it to its historical volatility, Armada Hflr Pr is 1.91 times less risky than Amazon. It trades about 0.02 of its potential returns per unit of risk. Amazon Inc is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 8,470 in Amazon Inc on September 12, 2024 and sell it today you would earn a total of 13,428 from holding Amazon Inc or generate 158.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 39.6% |
| Values | Daily Returns |
Armada Hflr Pr vs. Amazon Inc
Performance |
| Timeline |
| Armada Hflr Pr |
| Amazon Inc |
Armada Hflr and Amazon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Amazon
The main advantage of trading using opposite Armada Hflr and Amazon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Amazon 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 Amazon will offset losses from the drop in Amazon'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 |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |