Correlation Between Armada Hflr and Euronext
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Euronext 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 Euronext 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 Euronext NV, you can compare the effects of market volatilities on Armada Hflr and Euronext 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 Euronext. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Euronext.
Diversification Opportunities for Armada Hflr and Euronext
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Armada and Euronext is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Euronext NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Euronext NV 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 Euronext. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Euronext NV has no effect on the direction of Armada Hflr i.e., Armada Hflr and Euronext go up and down completely randomly.
Pair Corralation between Armada Hflr and Euronext
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Euronext. In addition to that, Armada Hflr is 1.19 times more volatile than Euronext NV. It trades about -0.02 of its total potential returns per unit of risk. Euronext NV is currently generating about 0.11 per unit of volatility. If you would invest 7,641 in Euronext NV on September 12, 2024 and sell it today you would earn a total of 3,019 from holding Euronext NV or generate 39.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Armada Hflr Pr vs. Euronext NV
Performance |
| Timeline |
| Armada Hflr Pr |
| Euronext NV |
Armada Hflr and Euronext Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Euronext
The main advantage of trading using opposite Armada Hflr and Euronext positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Euronext 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 Euronext will offset losses from the drop in Euronext'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 |
| Euronext vs. CME Group | Euronext vs. Intercontinental Exchange | Euronext vs. Hong Kong Exchanges | Euronext vs. London Stock Exchange |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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