Correlation Between Armada Hflr and IShares Future
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and IShares Future 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 IShares Future 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 iShares Future AI, you can compare the effects of market volatilities on Armada Hflr and IShares Future 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 IShares Future. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and IShares Future.
Diversification Opportunities for Armada Hflr and IShares Future
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Armada and IShares is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and iShares Future AI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Future AI 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 IShares Future. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Future AI has no effect on the direction of Armada Hflr i.e., Armada Hflr and IShares Future go up and down completely randomly.
Pair Corralation between Armada Hflr and IShares Future
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the IShares Future. In addition to that, Armada Hflr is 1.09 times more volatile than iShares Future AI. It trades about -0.02 of its total potential returns per unit of risk. iShares Future AI is currently generating about 0.04 per unit of volatility. If you would invest 3,430 in iShares Future AI on September 14, 2024 and sell it today you would earn a total of 397.00 from holding iShares Future AI or generate 11.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Armada Hflr Pr vs. iShares Future AI
Performance |
| Timeline |
| Armada Hflr Pr |
| iShares Future AI |
Armada Hflr and IShares Future Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and IShares Future
The main advantage of trading using opposite Armada Hflr and IShares Future positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, IShares Future 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 IShares Future will offset losses from the drop in IShares Future'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 |
| IShares Future vs. Freedom Day Dividend | IShares Future vs. Franklin Templeton ETF | IShares Future vs. iShares MSCI China | IShares Future vs. Tidal Trust II |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |