Correlation Between Armada Hflr and Chongqing Rural
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Chongqing Rural 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 Chongqing Rural 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 Chongqing Rural Commercial, you can compare the effects of market volatilities on Armada Hflr and Chongqing Rural 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 Chongqing Rural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Chongqing Rural.
Diversification Opportunities for Armada Hflr and Chongqing Rural
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Armada and Chongqing is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Chongqing Rural Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Rural Comm 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 Chongqing Rural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Rural Comm has no effect on the direction of Armada Hflr i.e., Armada Hflr and Chongqing Rural go up and down completely randomly.
Pair Corralation between Armada Hflr and Chongqing Rural
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Chongqing Rural. But the stock apears to be less risky and, when comparing its historical volatility, Armada Hflr Pr is 8.6 times less risky than Chongqing Rural. The stock trades about -0.21 of its potential returns per unit of risk. The Chongqing Rural Commercial is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,811 in Chongqing Rural Commercial on September 22, 2024 and sell it today you would earn a total of 671.00 from holding Chongqing Rural Commercial or generate 37.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Armada Hflr Pr vs. Chongqing Rural Commercial
Performance |
| Timeline |
| Armada Hflr Pr |
| Chongqing Rural Comm |
Armada Hflr and Chongqing Rural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Chongqing Rural
The main advantage of trading using opposite Armada Hflr and Chongqing Rural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Chongqing Rural 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 Chongqing Rural will offset losses from the drop in Chongqing Rural'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 |
| Chongqing Rural vs. Ross Stores | Chongqing Rural vs. Siriuspoint | Chongqing Rural vs. Duluth Holdings | Chongqing Rural vs. Chiba Bank Ltd |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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