Correlation Between Armada Hflr and Atos SE
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Atos SE 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 Atos SE 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 Atos SE, you can compare the effects of market volatilities on Armada Hflr and Atos SE 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 Atos SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Atos SE.
Diversification Opportunities for Armada Hflr and Atos SE
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Armada and Atos is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Atos SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atos SE 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 Atos SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atos SE has no effect on the direction of Armada Hflr i.e., Armada Hflr and Atos SE go up and down completely randomly.
Pair Corralation between Armada Hflr and Atos SE
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Atos SE. But the stock apears to be less risky and, when comparing its historical volatility, Armada Hflr Pr is 29.66 times less risky than Atos SE. The stock trades about 0.0 of its potential returns per unit of risk. The Atos SE is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,214 in Atos SE on October 12, 2024 and sell it today you would lose (1,214) from holding Atos SE or give up 99.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.0% |
| Values | Daily Returns |
Armada Hflr Pr vs. Atos SE
Performance |
| Timeline |
| Armada Hflr Pr |
| Atos SE |
Armada Hflr and Atos SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Atos SE
The main advantage of trading using opposite Armada Hflr and Atos SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Atos SE 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 Atos SE will offset losses from the drop in Atos SE'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 |
| Atos SE vs. COSMOSTEEL HLDGS | Atos SE vs. RELIANCE STEEL AL | Atos SE vs. USWE SPORTS AB | Atos SE vs. TOMBADOR IRON LTD |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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