Correlation Between Armada Hflr and Gateway Real
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Gateway Real 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 Gateway Real 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 Gateway Real Estate, you can compare the effects of market volatilities on Armada Hflr and Gateway Real 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 Gateway Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Gateway Real.
Diversification Opportunities for Armada Hflr and Gateway Real
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Armada and Gateway is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Gateway Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gateway Real Estate 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 Gateway Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gateway Real Estate has no effect on the direction of Armada Hflr i.e., Armada Hflr and Gateway Real go up and down completely randomly.
Pair Corralation between Armada Hflr and Gateway Real
Considering the 90-day investment horizon Armada Hflr Pr is expected to generate 0.17 times more return on investment than Gateway Real. However, Armada Hflr Pr is 5.74 times less risky than Gateway Real. It trades about 0.01 of its potential returns per unit of risk. Gateway Real Estate is currently generating about -0.01 per unit of risk. If you would invest 1,022 in Armada Hflr Pr on September 24, 2024 and sell it today you would earn a total of 2.00 from holding Armada Hflr Pr or generate 0.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.42% |
| Values | Daily Returns |
Armada Hflr Pr vs. Gateway Real Estate
Performance |
| Timeline |
| Armada Hflr Pr |
| Gateway Real Estate |
Armada Hflr and Gateway Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Gateway Real
The main advantage of trading using opposite Armada Hflr and Gateway Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Gateway Real 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 Gateway Real will offset losses from the drop in Gateway Real'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 |
| Gateway Real vs. Deutsche Wohnen SE | Gateway Real vs. TIMES CHINA HLDGS | Gateway Real vs. LANDSEA HOMES P | Gateway Real vs. Greenland Hong Kong |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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