Correlation Between Armada Hflr and CS Real
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and CS Real 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 CS Real 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 CS Real Estate, you can compare the effects of market volatilities on Armada Hflr and CS Real 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 CS Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and CS Real.
Diversification Opportunities for Armada Hflr and CS Real
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Armada and CSLP is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and CS Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CS Real Estate 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 CS Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CS Real Estate has no effect on the direction of Armada Hflr i.e., Armada Hflr and CS Real go up and down completely randomly.
Pair Corralation between Armada Hflr and CS Real
Considering the 90-day investment horizon Armada Hflr is expected to generate 1.82 times less return on investment than CS Real. In addition to that, Armada Hflr is 1.51 times more volatile than CS Real Estate. It trades about 0.03 of its total potential returns per unit of risk. CS Real Estate is currently generating about 0.08 per unit of volatility. If you would invest 12,442 in CS Real Estate on September 19, 2024 and sell it today you would earn a total of 3,308 from holding CS Real Estate or generate 26.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.66% |
| Values | Daily Returns |
Armada Hflr Pr vs. CS Real Estate
Performance |
| Timeline |
| Armada Hflr Pr |
| CS Real Estate |
Armada Hflr and CS Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and CS Real
The main advantage of trading using opposite Armada Hflr and CS Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, CS Real 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 CS Real will offset losses from the drop in CS Real'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 |
| CS Real vs. SPDR Dow Jones | CS Real vs. Baloise Holding AG | CS Real vs. SPDR FTSE UK | CS Real vs. Banque Cantonale du |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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