Correlation Between Armada Hflr and 3I Group
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and 3I Group 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 3I Group 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 3I Group PLC, you can compare the effects of market volatilities on Armada Hflr and 3I Group 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 3I Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and 3I Group.
Diversification Opportunities for Armada Hflr and 3I Group
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Armada and III is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and 3I Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3I Group PLC 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 3I Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3I Group PLC has no effect on the direction of Armada Hflr i.e., Armada Hflr and 3I Group go up and down completely randomly.
Pair Corralation between Armada Hflr and 3I Group
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the 3I Group. In addition to that, Armada Hflr is 1.33 times more volatile than 3I Group PLC. It trades about -0.27 of its total potential returns per unit of risk. 3I Group PLC is currently generating about -0.11 per unit of volatility. If you would invest 362,962 in 3I Group PLC on September 24, 2024 and sell it today you would lose (8,162) from holding 3I Group PLC or give up 2.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Armada Hflr Pr vs. 3I Group PLC
Performance |
| Timeline |
| Armada Hflr Pr |
| 3I Group PLC |
Armada Hflr and 3I Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and 3I Group
The main advantage of trading using opposite Armada Hflr and 3I Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, 3I Group 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 3I Group will offset losses from the drop in 3I Group'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 |
| 3I Group vs. Darden Restaurants | 3I Group vs. New Residential Investment | 3I Group vs. Kinnevik Investment AB | 3I Group vs. Scandinavian Tobacco Group |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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