Correlation Between Armada Hflr and BNY Mellon
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and BNY Mellon 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 BNY Mellon 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 BNY Mellon Strategic, you can compare the effects of market volatilities on Armada Hflr and BNY Mellon 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 BNY Mellon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and BNY Mellon.
Diversification Opportunities for Armada Hflr and BNY Mellon
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Armada and BNY is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and BNY Mellon Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNY Mellon Strategic 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 BNY Mellon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BNY Mellon Strategic has no effect on the direction of Armada Hflr i.e., Armada Hflr and BNY Mellon go up and down completely randomly.
Pair Corralation between Armada Hflr and BNY Mellon
Considering the 90-day investment horizon Armada Hflr is expected to generate 1.43 times less return on investment than BNY Mellon. In addition to that, Armada Hflr is 2.33 times more volatile than BNY Mellon Strategic. It trades about 0.02 of its total potential returns per unit of risk. BNY Mellon Strategic is currently generating about 0.08 per unit of volatility. If you would invest 545.00 in BNY Mellon Strategic on September 12, 2024 and sell it today you would earn a total of 95.50 from holding BNY Mellon Strategic or generate 17.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Armada Hflr Pr vs. BNY Mellon Strategic
Performance |
| Timeline |
| Armada Hflr Pr |
| BNY Mellon Strategic |
Armada Hflr and BNY Mellon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and BNY Mellon
The main advantage of trading using opposite Armada Hflr and BNY Mellon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, BNY Mellon 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 BNY Mellon will offset losses from the drop in BNY Mellon'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 |
| BNY Mellon vs. Blackrock Muniholdings Closed | BNY Mellon vs. DTF Tax Free | BNY Mellon vs. John Hancock Income | BNY Mellon vs. MFS Investment Grade |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |