Correlation Between Armada Hflr and Careium AB
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Careium AB 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 Careium AB 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 Careium AB, you can compare the effects of market volatilities on Armada Hflr and Careium AB 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 Careium AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Careium AB.
Diversification Opportunities for Armada Hflr and Careium AB
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Armada and Careium is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Careium AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Careium AB 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 Careium AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Careium AB has no effect on the direction of Armada Hflr i.e., Armada Hflr and Careium AB go up and down completely randomly.
Pair Corralation between Armada Hflr and Careium AB
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Careium AB. But the stock apears to be less risky and, when comparing its historical volatility, Armada Hflr Pr is 1.76 times less risky than Careium AB. The stock trades about -0.02 of its potential returns per unit of risk. The Careium AB is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,460 in Careium AB on September 14, 2024 and sell it today you would earn a total of 490.00 from holding Careium AB or generate 19.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Armada Hflr Pr vs. Careium AB
Performance |
| Timeline |
| Armada Hflr Pr |
| Careium AB |
Armada Hflr and Careium AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Careium AB
The main advantage of trading using opposite Armada Hflr and Careium AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Careium AB 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 Careium AB will offset losses from the drop in Careium AB'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 |
| Careium AB vs. Humble Group AB | Careium AB vs. Enad Global 7 | Careium AB vs. Goodbye Kansas Group | Careium AB vs. KABE Group AB |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |