Correlation Between Armada Hflr and Discipline Fund
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Discipline Fund 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 Discipline Fund 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 Discipline Fund ETF, you can compare the effects of market volatilities on Armada Hflr and Discipline Fund 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 Discipline Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Discipline Fund.
Diversification Opportunities for Armada Hflr and Discipline Fund
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Armada and Discipline is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Discipline Fund ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Discipline Fund ETF 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 Discipline Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Discipline Fund ETF has no effect on the direction of Armada Hflr i.e., Armada Hflr and Discipline Fund go up and down completely randomly.
Pair Corralation between Armada Hflr and Discipline Fund
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Discipline Fund. In addition to that, Armada Hflr is 2.8 times more volatile than Discipline Fund ETF. It trades about -0.09 of its total potential returns per unit of risk. Discipline Fund ETF is currently generating about 0.21 per unit of volatility. If you would invest 2,279 in Discipline Fund ETF on September 13, 2024 and sell it today you would earn a total of 31.00 from holding Discipline Fund ETF or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Armada Hflr Pr vs. Discipline Fund ETF
Performance |
| Timeline |
| Armada Hflr Pr |
| Discipline Fund ETF |
Armada Hflr and Discipline Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Discipline Fund
The main advantage of trading using opposite Armada Hflr and Discipline Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Discipline Fund 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 Discipline Fund will offset losses from the drop in Discipline Fund'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 |
| Discipline Fund vs. ATAC Rotation ETF | Discipline Fund vs. Amplify BlackSwan ISWN | Discipline Fund vs. Tidal ETF Trust | Discipline Fund vs. Aptus Defined Risk |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| 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 | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |