Correlation Between Armada Hflr and Clipper Realty
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Clipper Realty 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 Clipper Realty 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 Clipper Realty, you can compare the effects of market volatilities on Armada Hflr and Clipper Realty 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 Clipper Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Clipper Realty.
Diversification Opportunities for Armada Hflr and Clipper Realty
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Armada and Clipper is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Clipper Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clipper Realty 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 Clipper Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clipper Realty has no effect on the direction of Armada Hflr i.e., Armada Hflr and Clipper Realty go up and down completely randomly.
Pair Corralation between Armada Hflr and Clipper Realty
Considering the 90-day investment horizon Armada Hflr is expected to generate 12.82 times less return on investment than Clipper Realty. But when comparing it to its historical volatility, Armada Hflr Pr is 2.15 times less risky than Clipper Realty. It trades about 0.01 of its potential returns per unit of risk. Clipper Realty is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 375.00 in Clipper Realty on August 29, 2024 and sell it today you would earn a total of 121.00 from holding Clipper Realty or generate 32.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Armada Hflr Pr vs. Clipper Realty
Performance |
| Timeline |
| Armada Hflr Pr |
| Clipper Realty |
Armada Hflr and Clipper Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Clipper Realty
The main advantage of trading using opposite Armada Hflr and Clipper Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Clipper Realty 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 Clipper Realty will offset losses from the drop in Clipper Realty'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 |
| Clipper Realty vs. Nexpoint Residential Trust | Clipper Realty vs. Centerspace | Clipper Realty vs. UDR Inc | Clipper Realty vs. BRT Realty Trust |
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 CEOs Directory module to screen CEOs from public companies around the world.
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