Correlation Between Armada Hflr and VanEck Global
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and VanEck Global 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 VanEck Global 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 VanEck Global Listed, you can compare the effects of market volatilities on Armada Hflr and VanEck Global 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 VanEck Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and VanEck Global.
Diversification Opportunities for Armada Hflr and VanEck Global
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Armada and VanEck is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and VanEck Global Listed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Global Listed 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 VanEck Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Global Listed has no effect on the direction of Armada Hflr i.e., Armada Hflr and VanEck Global go up and down completely randomly.
Pair Corralation between Armada Hflr and VanEck Global
Considering the 90-day investment horizon Armada Hflr is expected to generate 5.27 times less return on investment than VanEck Global. In addition to that, Armada Hflr is 1.56 times more volatile than VanEck Global Listed. It trades about 0.02 of its total potential returns per unit of risk. VanEck Global Listed is currently generating about 0.14 per unit of volatility. If you would invest 1,344 in VanEck Global Listed on September 13, 2024 and sell it today you would earn a total of 1,269 from holding VanEck Global Listed or generate 94.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Armada Hflr Pr vs. VanEck Global Listed
Performance |
| Timeline |
| Armada Hflr Pr |
| VanEck Global Listed |
Armada Hflr and VanEck Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and VanEck Global
The main advantage of trading using opposite Armada Hflr and VanEck Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, VanEck Global 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 VanEck Global will offset losses from the drop in VanEck Global'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 |
| VanEck Global vs. VanEck Vectors Australian | VanEck Global vs. VanEck FTSE China | VanEck Global vs. VanEck MSCI International | VanEck Global vs. VanEck Global Clean |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |