Correlation Between Armada Hflr and Duluth Holdings
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Duluth Holdings 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 Duluth Holdings 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 Duluth Holdings, you can compare the effects of market volatilities on Armada Hflr and Duluth Holdings 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 Duluth Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Duluth Holdings.
Diversification Opportunities for Armada Hflr and Duluth Holdings
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Armada and Duluth is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Duluth Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duluth Holdings 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 Duluth Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duluth Holdings has no effect on the direction of Armada Hflr i.e., Armada Hflr and Duluth Holdings go up and down completely randomly.
Pair Corralation between Armada Hflr and Duluth Holdings
Considering the 90-day investment horizon Armada Hflr Pr is expected to generate 0.56 times more return on investment than Duluth Holdings. However, Armada Hflr Pr is 1.79 times less risky than Duluth Holdings. It trades about -0.01 of its potential returns per unit of risk. Duluth Holdings is currently generating about -0.05 per unit of risk. If you would invest 999.00 in Armada Hflr Pr on December 6, 2024 and sell it today you would lose (114.00) from holding Armada Hflr Pr or give up 11.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Armada Hflr Pr vs. Duluth Holdings
Performance |
| Timeline |
| Armada Hflr Pr |
| Duluth Holdings |
Armada Hflr and Duluth Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Duluth Holdings
The main advantage of trading using opposite Armada Hflr and Duluth Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Duluth Holdings 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 Duluth Holdings will offset losses from the drop in Duluth Holdings' 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 |
| Duluth Holdings vs. Zumiez Inc | Duluth Holdings vs. JJill Inc | Duluth Holdings vs. Shoe Carnival | Duluth Holdings vs. Cato Corporation |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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