Correlation Between Armada Hflr and Amundi FTSE
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Amundi FTSE 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 Amundi FTSE 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 Amundi FTSE EPRANAREIT, you can compare the effects of market volatilities on Armada Hflr and Amundi FTSE 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 Amundi FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Amundi FTSE.
Diversification Opportunities for Armada Hflr and Amundi FTSE
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Armada and Amundi is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Amundi FTSE EPRANAREIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi FTSE EPRANAREIT 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 Amundi FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi FTSE EPRANAREIT has no effect on the direction of Armada Hflr i.e., Armada Hflr and Amundi FTSE go up and down completely randomly.
Pair Corralation between Armada Hflr and Amundi FTSE
Considering the 90-day investment horizon Armada Hflr is expected to generate 13.8 times less return on investment than Amundi FTSE. But when comparing it to its historical volatility, Armada Hflr Pr is 4.68 times less risky than Amundi FTSE. It trades about 0.02 of its potential returns per unit of risk. Amundi FTSE EPRANAREIT is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,636 in Amundi FTSE EPRANAREIT on September 14, 2024 and sell it today you would earn a total of 2,727 from holding Amundi FTSE EPRANAREIT or generate 166.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 88.28% |
| Values | Daily Returns |
Armada Hflr Pr vs. Amundi FTSE EPRANAREIT
Performance |
| Timeline |
| Armada Hflr Pr |
| Amundi FTSE EPRANAREIT |
Armada Hflr and Amundi FTSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Amundi FTSE
The main advantage of trading using opposite Armada Hflr and Amundi FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Amundi FTSE 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 Amundi FTSE will offset losses from the drop in Amundi FTSE'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 |
| Amundi FTSE vs. Baloise Holding AG | Amundi FTSE vs. 21Shares Polkadot ETP | Amundi FTSE vs. UBS ETF MSCI | Amundi FTSE vs. BB Biotech AG |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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