Correlation Between Armada Hflr and Baloise Swiss
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Baloise Swiss 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 Baloise Swiss 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 Baloise Swiss Property, you can compare the effects of market volatilities on Armada Hflr and Baloise Swiss 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 Baloise Swiss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Baloise Swiss.
Diversification Opportunities for Armada Hflr and Baloise Swiss
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Armada and Baloise is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Baloise Swiss Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baloise Swiss Property 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 Baloise Swiss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baloise Swiss Property has no effect on the direction of Armada Hflr i.e., Armada Hflr and Baloise Swiss go up and down completely randomly.
Pair Corralation between Armada Hflr and Baloise Swiss
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Baloise Swiss. But the stock apears to be less risky and, when comparing its historical volatility, Armada Hflr Pr is 1.13 times less risky than Baloise Swiss. The stock trades about -0.04 of its potential returns per unit of risk. The Baloise Swiss Property is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 11,850 in Baloise Swiss Property on September 19, 2024 and sell it today you would earn a total of 850.00 from holding Baloise Swiss Property or generate 7.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Armada Hflr Pr vs. Baloise Swiss Property
Performance |
| Timeline |
| Armada Hflr Pr |
| Baloise Swiss Property |
Armada Hflr and Baloise Swiss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Baloise Swiss
The main advantage of trading using opposite Armada Hflr and Baloise Swiss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Baloise Swiss 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 Baloise Swiss will offset losses from the drop in Baloise Swiss' 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 |
| Baloise Swiss vs. SPDR Dow Jones | Baloise Swiss vs. Baloise Holding AG | Baloise Swiss vs. Banque Cantonale du | Baloise Swiss vs. 21Shares Polkadot ETP |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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