Correlation Between Armada Hflr and American Funds
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and American Funds 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 American Funds 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 American Funds Global, you can compare the effects of market volatilities on Armada Hflr and American Funds 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 American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and American Funds.
Diversification Opportunities for Armada Hflr and American Funds
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Armada and American is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and American Funds Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds Global 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 American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds Global has no effect on the direction of Armada Hflr i.e., Armada Hflr and American Funds go up and down completely randomly.
Pair Corralation between Armada Hflr and American Funds
Considering the 90-day investment horizon Armada Hflr is expected to generate 2.1 times less return on investment than American Funds. In addition to that, Armada Hflr is 1.92 times more volatile than American Funds Global. It trades about 0.03 of its total potential returns per unit of risk. American Funds Global is currently generating about 0.12 per unit of volatility. If you would invest 1,925 in American Funds Global on September 15, 2024 and sell it today you would earn a total of 510.00 from holding American Funds Global or generate 26.49% 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. American Funds Global
Performance |
| Timeline |
| Armada Hflr Pr |
| American Funds Global |
Armada Hflr and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and American Funds
The main advantage of trading using opposite Armada Hflr and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, American Funds 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 American Funds will offset losses from the drop in American Funds' 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 |
| American Funds vs. Prudential Short Duration | American Funds vs. Easterly Snow Longshort | American Funds vs. Alpine Ultra Short | American Funds vs. Boston Partners Longshort |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Stocks Directory Find actively traded stocks across global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |