Correlation Between Armada Hflr and Lyxor UCITS
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Lyxor UCITS 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 Lyxor UCITS 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 Lyxor UCITS Iboxx, you can compare the effects of market volatilities on Armada Hflr and Lyxor UCITS 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 Lyxor UCITS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Lyxor UCITS.
Diversification Opportunities for Armada Hflr and Lyxor UCITS
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Armada and Lyxor is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Lyxor UCITS Iboxx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor UCITS Iboxx 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 Lyxor UCITS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor UCITS Iboxx has no effect on the direction of Armada Hflr i.e., Armada Hflr and Lyxor UCITS go up and down completely randomly.
Pair Corralation between Armada Hflr and Lyxor UCITS
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Lyxor UCITS. In addition to that, Armada Hflr is 1.03 times more volatile than Lyxor UCITS Iboxx. It trades about -0.21 of its total potential returns per unit of risk. Lyxor UCITS Iboxx is currently generating about -0.05 per unit of volatility. If you would invest 12,323 in Lyxor UCITS Iboxx on September 19, 2024 and sell it today you would lose (227.00) from holding Lyxor UCITS Iboxx or give up 1.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Armada Hflr Pr vs. Lyxor UCITS Iboxx
Performance |
| Timeline |
| Armada Hflr Pr |
| Lyxor UCITS Iboxx |
Armada Hflr and Lyxor UCITS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Lyxor UCITS
The main advantage of trading using opposite Armada Hflr and Lyxor UCITS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Lyxor UCITS 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 Lyxor UCITS will offset losses from the drop in Lyxor UCITS'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 |
| Lyxor UCITS vs. Lyxor SP 500 | Lyxor UCITS vs. Lyxor UCITS Daily | Lyxor UCITS vs. Lyxor UCITS MSCI | Lyxor UCITS vs. Lyxor Treasury 10Y |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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