Correlation Between Armada Hflr and Direxion
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Direxion 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 Direxion 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 Direxion, you can compare the effects of market volatilities on Armada Hflr and Direxion 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 Direxion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Direxion.
Diversification Opportunities for Armada Hflr and Direxion
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Armada and Direxion is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Direxion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Direxion 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 Direxion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Direxion has no effect on the direction of Armada Hflr i.e., Armada Hflr and Direxion go up and down completely randomly.
Pair Corralation between Armada Hflr and Direxion
If you would invest 1,003 in Armada Hflr Pr on September 14, 2024 and sell it today you would earn a total of 87.50 from holding Armada Hflr Pr or generate 8.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.37% |
| Values | Daily Returns |
Armada Hflr Pr vs. Direxion
Performance |
| Timeline |
| Armada Hflr Pr |
| Direxion |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Armada Hflr and Direxion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Direxion
The main advantage of trading using opposite Armada Hflr and Direxion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Direxion 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 Direxion will offset losses from the drop in Direxion'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 |
| Direxion vs. ProShares Ultra SP500 | Direxion vs. Direxion Daily SP | Direxion vs. Direxion Daily SP | Direxion vs. MicroSectors FANG Index |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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