Correlation Between Armada Hflr and Voya Floating
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Voya Floating 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 Voya Floating 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 Voya Floating Rate, you can compare the effects of market volatilities on Armada Hflr and Voya Floating 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 Voya Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Voya Floating.
Diversification Opportunities for Armada Hflr and Voya Floating
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Armada and Voya is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Voya Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Floating Rate 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 Voya Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Floating Rate has no effect on the direction of Armada Hflr i.e., Armada Hflr and Voya Floating go up and down completely randomly.
Pair Corralation between Armada Hflr and Voya Floating
Considering the 90-day investment horizon Armada Hflr Pr is expected to generate about the same return on investment as Voya Floating Rate. However, Armada Hflr is 7.2 times more volatile than Voya Floating Rate. It trades about 0.02 of its potential returns per unit of risk. Voya Floating Rate is currently producing about 0.17 per unit of risk. If you would invest 726.00 in Voya Floating Rate on September 12, 2024 and sell it today you would earn a total of 90.00 from holding Voya Floating Rate or generate 12.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.7% |
| Values | Daily Returns |
Armada Hflr Pr vs. Voya Floating Rate
Performance |
| Timeline |
| Armada Hflr Pr |
| Voya Floating Rate |
Armada Hflr and Voya Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Voya Floating
The main advantage of trading using opposite Armada Hflr and Voya Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Voya Floating 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 Voya Floating will offset losses from the drop in Voya Floating'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 |
| Voya Floating vs. Transamerica Intermediate Muni | Voya Floating vs. Blrc Sgy Mnp | Voya Floating vs. Baird Strategic Municipal | Voya Floating vs. Morningstar Municipal Bond |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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