Correlation Between Armada Hflr and Bonhote Immobilier
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Bonhote Immobilier 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 Bonhote Immobilier 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 Bonhote Immobilier SICAV BIM, you can compare the effects of market volatilities on Armada Hflr and Bonhote Immobilier 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 Bonhote Immobilier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Bonhote Immobilier.
Diversification Opportunities for Armada Hflr and Bonhote Immobilier
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Armada and Bonhote is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Bonhote Immobilier SICAV BIM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonhote Immobilier 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 Bonhote Immobilier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonhote Immobilier has no effect on the direction of Armada Hflr i.e., Armada Hflr and Bonhote Immobilier go up and down completely randomly.
Pair Corralation between Armada Hflr and Bonhote Immobilier
Considering the 90-day investment horizon Armada Hflr is expected to generate 2.2 times less return on investment than Bonhote Immobilier. In addition to that, Armada Hflr is 1.55 times more volatile than Bonhote Immobilier SICAV BIM. It trades about 0.03 of its total potential returns per unit of risk. Bonhote Immobilier SICAV BIM is currently generating about 0.1 per unit of volatility. If you would invest 12,300 in Bonhote Immobilier SICAV BIM on September 19, 2024 and sell it today you would earn a total of 4,100 from holding Bonhote Immobilier SICAV BIM or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.66% |
| Values | Daily Returns |
Armada Hflr Pr vs. Bonhote Immobilier SICAV BIM
Performance |
| Timeline |
| Armada Hflr Pr |
| Bonhote Immobilier |
Armada Hflr and Bonhote Immobilier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Bonhote Immobilier
The main advantage of trading using opposite Armada Hflr and Bonhote Immobilier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Bonhote Immobilier 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 Bonhote Immobilier will offset losses from the drop in Bonhote Immobilier'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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |