Correlation Between Armada Hflr and Institut IGH
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Institut IGH 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 Institut IGH 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 Institut IGH dd, you can compare the effects of market volatilities on Armada Hflr and Institut IGH 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 Institut IGH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Institut IGH.
Diversification Opportunities for Armada Hflr and Institut IGH
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Armada and Institut is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Institut IGH dd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Institut IGH dd 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 Institut IGH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Institut IGH dd has no effect on the direction of Armada Hflr i.e., Armada Hflr and Institut IGH go up and down completely randomly.
Pair Corralation between Armada Hflr and Institut IGH
Considering the 90-day investment horizon Armada Hflr is expected to generate 10.95 times less return on investment than Institut IGH. But when comparing it to its historical volatility, Armada Hflr Pr is 3.43 times less risky than Institut IGH. It trades about 0.02 of its potential returns per unit of risk. Institut IGH dd is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,114 in Institut IGH dd on September 14, 2024 and sell it today you would earn a total of 586.00 from holding Institut IGH dd or generate 52.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 57.58% |
| Values | Daily Returns |
Armada Hflr Pr vs. Institut IGH dd
Performance |
| Timeline |
| Armada Hflr Pr |
| Institut IGH dd |
Armada Hflr and Institut IGH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Institut IGH
The main advantage of trading using opposite Armada Hflr and Institut IGH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Institut IGH 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 Institut IGH will offset losses from the drop in Institut IGH'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 |
| Institut IGH vs. AD Plastik dd | Institut IGH vs. Hrvatska Postanska Banka | Institut IGH vs. Dalekovod dd | Institut IGH vs. Podravka Prehrambena Industrija |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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