Correlation Between Armada Hflr and IShares AEX
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and IShares AEX 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 IShares AEX 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 iShares AEX UCITS, you can compare the effects of market volatilities on Armada Hflr and IShares AEX 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 IShares AEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and IShares AEX.
Diversification Opportunities for Armada Hflr and IShares AEX
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Armada and IShares is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and iShares AEX UCITS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares AEX UCITS 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 IShares AEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares AEX UCITS has no effect on the direction of Armada Hflr i.e., Armada Hflr and IShares AEX go up and down completely randomly.
Pair Corralation between Armada Hflr and IShares AEX
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the IShares AEX. In addition to that, Armada Hflr is 1.22 times more volatile than iShares AEX UCITS. It trades about -0.09 of its total potential returns per unit of risk. iShares AEX UCITS is currently generating about 0.25 per unit of volatility. If you would invest 8,643 in iShares AEX UCITS on September 13, 2024 and sell it today you would earn a total of 322.00 from holding iShares AEX UCITS or generate 3.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Armada Hflr Pr vs. iShares AEX UCITS
Performance |
| Timeline |
| Armada Hflr Pr |
| iShares AEX UCITS |
Armada Hflr and IShares AEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and IShares AEX
The main advantage of trading using opposite Armada Hflr and IShares AEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, IShares AEX 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 IShares AEX will offset losses from the drop in IShares AEX'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 |
| IShares AEX vs. Vanguard SP 500 | IShares AEX vs. iShares II Public | IShares AEX vs. Vanguard FTSE All World | IShares AEX vs. iShares SP 500 |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |