Correlation Between Armada Hflr and Artis REIT
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Artis REIT 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 Artis REIT 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 Artis REIT, you can compare the effects of market volatilities on Armada Hflr and Artis REIT 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 Artis REIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Artis REIT.
Diversification Opportunities for Armada Hflr and Artis REIT
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Armada and Artis is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Artis REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artis REIT 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 Artis REIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artis REIT has no effect on the direction of Armada Hflr i.e., Armada Hflr and Artis REIT go up and down completely randomly.
Pair Corralation between Armada Hflr and Artis REIT
Considering the 90-day investment horizon Armada Hflr is expected to generate 5.23 times less return on investment than Artis REIT. But when comparing it to its historical volatility, Armada Hflr Pr is 2.48 times less risky than Artis REIT. It trades about 0.02 of its potential returns per unit of risk. Artis REIT is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 446.00 in Artis REIT on August 31, 2024 and sell it today you would earn a total of 104.00 from holding Artis REIT or generate 23.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 83.25% |
| Values | Daily Returns |
Armada Hflr Pr vs. Artis REIT
Performance |
| Timeline |
| Armada Hflr Pr |
| Artis REIT |
Armada Hflr and Artis REIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Artis REIT
The main advantage of trading using opposite Armada Hflr and Artis REIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Artis REIT 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 Artis REIT will offset losses from the drop in Artis REIT'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 |
| Artis REIT vs. Armada Hoffler Properties | Artis REIT vs. Ascott Residence Trust | Artis REIT vs. Armada Hflr Pr | Artis REIT vs. Modiv Inc |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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