Correlation Between Armada Hflr and Four Corners
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Four Corners 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 Four Corners 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 Four Corners Property, you can compare the effects of market volatilities on Armada Hflr and Four Corners 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 Four Corners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Four Corners.
Diversification Opportunities for Armada Hflr and Four Corners
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Armada and Four is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Four Corners Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Four Corners Property 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 Four Corners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Four Corners Property has no effect on the direction of Armada Hflr i.e., Armada Hflr and Four Corners go up and down completely randomly.
Pair Corralation between Armada Hflr and Four Corners
Considering the 90-day investment horizon Armada Hflr is expected to generate 1.86 times less return on investment than Four Corners. In addition to that, Armada Hflr is 1.31 times more volatile than Four Corners Property. It trades about 0.02 of its total potential returns per unit of risk. Four Corners Property is currently generating about 0.04 per unit of volatility. If you would invest 2,415 in Four Corners Property on August 30, 2024 and sell it today you would earn a total of 539.00 from holding Four Corners Property or generate 22.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Armada Hflr Pr vs. Four Corners Property
Performance |
| Timeline |
| Armada Hflr Pr |
| Four Corners Property |
Armada Hflr and Four Corners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Four Corners
The main advantage of trading using opposite Armada Hflr and Four Corners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Four Corners 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 Four Corners will offset losses from the drop in Four Corners' 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 |
| Four Corners vs. CBL Associates Properties | Four Corners vs. Cedar Realty Trust | Four Corners vs. Simon Property Group | Four Corners vs. Realty Income |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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