Correlation Between Armada Hflr and Catalyst Enhanced
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Catalyst Enhanced 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 Catalyst Enhanced 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 Catalyst Enhanced Income, you can compare the effects of market volatilities on Armada Hflr and Catalyst Enhanced 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 Catalyst Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Catalyst Enhanced.
Diversification Opportunities for Armada Hflr and Catalyst Enhanced
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Armada and Catalyst is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Catalyst Enhanced Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Enhanced Income 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 Catalyst Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Enhanced Income has no effect on the direction of Armada Hflr i.e., Armada Hflr and Catalyst Enhanced go up and down completely randomly.
Pair Corralation between Armada Hflr and Catalyst Enhanced
Considering the 90-day investment horizon Armada Hflr Pr is expected to generate 6.85 times more return on investment than Catalyst Enhanced. However, Armada Hflr is 6.85 times more volatile than Catalyst Enhanced Income. It trades about 0.02 of its potential returns per unit of risk. Catalyst Enhanced Income is currently generating about 0.03 per unit of risk. If you would invest 1,014 in Armada Hflr Pr on September 12, 2024 and sell it today you would earn a total of 83.00 from holding Armada Hflr Pr or generate 8.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.7% |
| Values | Daily Returns |
Armada Hflr Pr vs. Catalyst Enhanced Income
Performance |
| Timeline |
| Armada Hflr Pr |
| Catalyst Enhanced Income |
Armada Hflr and Catalyst Enhanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Catalyst Enhanced
The main advantage of trading using opposite Armada Hflr and Catalyst Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Catalyst Enhanced 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 Catalyst Enhanced will offset losses from the drop in Catalyst Enhanced'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 |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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