Correlation Between Armada Hflr and Jbfo Fof
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Jbfo Fof 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 Jbfo Fof 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 Jbfo Fof Fundo, you can compare the effects of market volatilities on Armada Hflr and Jbfo Fof 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 Jbfo Fof. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Jbfo Fof.
Diversification Opportunities for Armada Hflr and Jbfo Fof
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Armada and Jbfo is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Jbfo Fof Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jbfo Fof Fundo 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 Jbfo Fof. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jbfo Fof Fundo has no effect on the direction of Armada Hflr i.e., Armada Hflr and Jbfo Fof go up and down completely randomly.
Pair Corralation between Armada Hflr and Jbfo Fof
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Jbfo Fof. But the stock apears to be less risky and, when comparing its historical volatility, Armada Hflr Pr is 4.54 times less risky than Jbfo Fof. The stock trades about -0.07 of its potential returns per unit of risk. The Jbfo Fof Fundo is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 7,028 in Jbfo Fof Fundo on September 14, 2024 and sell it today you would earn a total of 1,173 from holding Jbfo Fof Fundo or generate 16.69% 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. Jbfo Fof Fundo
Performance |
| Timeline |
| Armada Hflr Pr |
| Jbfo Fof Fundo |
Armada Hflr and Jbfo Fof Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Jbfo Fof
The main advantage of trading using opposite Armada Hflr and Jbfo Fof positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Jbfo Fof 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 Jbfo Fof will offset losses from the drop in Jbfo Fof'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 |
| Jbfo Fof vs. BTG Pactual Logstica | Jbfo Fof vs. Plano Plano Desenvolvimento | Jbfo Fof vs. Companhia Habitasul de | Jbfo Fof 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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