Correlation Between Armada Hflr and Heineken Holding
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Heineken Holding 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 Heineken Holding 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 Heineken Holding NV, you can compare the effects of market volatilities on Armada Hflr and Heineken Holding 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 Heineken Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Heineken Holding.
Diversification Opportunities for Armada Hflr and Heineken Holding
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Armada and Heineken is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Heineken Holding NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heineken Holding 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 Heineken Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heineken Holding has no effect on the direction of Armada Hflr i.e., Armada Hflr and Heineken Holding go up and down completely randomly.
Pair Corralation between Armada Hflr and Heineken Holding
Considering the 90-day investment horizon Armada Hflr Pr is expected to generate 0.78 times more return on investment than Heineken Holding. However, Armada Hflr Pr is 1.28 times less risky than Heineken Holding. It trades about 0.02 of its potential returns per unit of risk. Heineken Holding NV is currently generating about -0.11 per unit of risk. If you would invest 1,062 in Armada Hflr Pr on September 14, 2024 and sell it today you would earn a total of 26.00 from holding Armada Hflr Pr or generate 2.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Armada Hflr Pr vs. Heineken Holding NV
Performance |
| Timeline |
| Armada Hflr Pr |
| Heineken Holding |
Armada Hflr and Heineken Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Heineken Holding
The main advantage of trading using opposite Armada Hflr and Heineken Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Heineken Holding 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 Heineken Holding will offset losses from the drop in Heineken Holding'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 |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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