Correlation Between Armada Hflr and HUSI11
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and HUSI11 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 HUSI11 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 HUSI11, you can compare the effects of market volatilities on Armada Hflr and HUSI11 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 HUSI11. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and HUSI11.
Diversification Opportunities for Armada Hflr and HUSI11
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Armada and HUSI11 is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and HUSI11 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUSI11 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 HUSI11. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUSI11 has no effect on the direction of Armada Hflr i.e., Armada Hflr and HUSI11 go up and down completely randomly.
Pair Corralation between Armada Hflr and HUSI11
Considering the 90-day investment horizon Armada Hflr is expected to generate 2.27 times less return on investment than HUSI11. In addition to that, Armada Hflr is 3.07 times more volatile than HUSI11. It trades about 0.03 of its total potential returns per unit of risk. HUSI11 is currently generating about 0.22 per unit of volatility. If you would invest 121,144 in HUSI11 on September 15, 2024 and sell it today you would earn a total of 1,356 from holding HUSI11 or generate 1.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Armada Hflr Pr vs. HUSI11
Performance |
| Timeline |
| Armada Hflr Pr |
| HUSI11 |
Armada Hflr and HUSI11 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and HUSI11
The main advantage of trading using opposite Armada Hflr and HUSI11 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, HUSI11 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 HUSI11 will offset losses from the drop in HUSI11'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 |
| HUSI11 vs. BTG Pactual Logstica | HUSI11 vs. Plano Plano Desenvolvimento | HUSI11 vs. Companhia Habitasul de | HUSI11 vs. FDO INV IMOB |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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