Correlation Between Armada Hflr and BNY Mellon
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and BNY Mellon 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 BNY Mellon 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 BNY Mellon Global, you can compare the effects of market volatilities on Armada Hflr and BNY Mellon 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 BNY Mellon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and BNY Mellon.
Diversification Opportunities for Armada Hflr and BNY Mellon
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Armada and BNY is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and BNY Mellon Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNY Mellon Global 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 BNY Mellon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BNY Mellon Global has no effect on the direction of Armada Hflr i.e., Armada Hflr and BNY Mellon go up and down completely randomly.
Pair Corralation between Armada Hflr and BNY Mellon
Considering the 90-day investment horizon Armada Hflr Pr is expected to generate 3.83 times more return on investment than BNY Mellon. However, Armada Hflr is 3.83 times more volatile than BNY Mellon Global. It trades about 0.02 of its potential returns per unit of risk. BNY Mellon Global is currently generating about 0.04 per unit of risk. If you would invest 1,017 in Armada Hflr Pr on September 13, 2024 and sell it today you would earn a total of 80.00 from holding Armada Hflr Pr or generate 7.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 41.9% |
| Values | Daily Returns |
Armada Hflr Pr vs. BNY Mellon Global
Performance |
| Timeline |
| Armada Hflr Pr |
| BNY Mellon Global |
Armada Hflr and BNY Mellon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and BNY Mellon
The main advantage of trading using opposite Armada Hflr and BNY Mellon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, BNY Mellon 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 BNY Mellon will offset losses from the drop in BNY Mellon'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 |
| BNY Mellon vs. Groupama Entreprises N | BNY Mellon vs. Renaissance Europe C | BNY Mellon vs. Superior Plus Corp | BNY Mellon vs. Origin Agritech |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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