Correlation Between Armada Hflr and EFG International
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and EFG International 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 EFG International 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 EFG International AG, you can compare the effects of market volatilities on Armada Hflr and EFG International 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 EFG International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and EFG International.
Diversification Opportunities for Armada Hflr and EFG International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Armada and EFG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and EFG International AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EFG International 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 EFG International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EFG International has no effect on the direction of Armada Hflr i.e., Armada Hflr and EFG International go up and down completely randomly.
Pair Corralation between Armada Hflr and EFG International
Considering the 90-day investment horizon Armada Hflr is expected to generate 11.3 times less return on investment than EFG International. But when comparing it to its historical volatility, Armada Hflr Pr is 1.21 times less risky than EFG International. It trades about 0.01 of its potential returns per unit of risk. EFG International AG is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 733.00 in EFG International AG on September 19, 2024 and sell it today you would earn a total of 647.00 from holding EFG International AG or generate 88.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 85.48% |
| Values | Daily Returns |
Armada Hflr Pr vs. EFG International AG
Performance |
| Timeline |
| Armada Hflr Pr |
| EFG International |
Armada Hflr and EFG International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and EFG International
The main advantage of trading using opposite Armada Hflr and EFG International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, EFG International 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 EFG International will offset losses from the drop in EFG International'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 |
| EFG International vs. Bank of America | EFG International vs. Citigroup | EFG International vs. JPMorgan Chase Co | EFG International vs. Wells Fargo |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |