Correlation Between Armada Hflr and YOMA STRATEGIC
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and YOMA STRATEGIC 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 YOMA STRATEGIC 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 YOMA STRATEGIC HLDG, you can compare the effects of market volatilities on Armada Hflr and YOMA STRATEGIC 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 YOMA STRATEGIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and YOMA STRATEGIC.
Diversification Opportunities for Armada Hflr and YOMA STRATEGIC
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Armada and YOMA is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and YOMA STRATEGIC HLDG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YOMA STRATEGIC HLDG 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 YOMA STRATEGIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YOMA STRATEGIC HLDG has no effect on the direction of Armada Hflr i.e., Armada Hflr and YOMA STRATEGIC go up and down completely randomly.
Pair Corralation between Armada Hflr and YOMA STRATEGIC
Considering the 90-day investment horizon Armada Hflr Pr is expected to generate 0.37 times more return on investment than YOMA STRATEGIC. However, Armada Hflr Pr is 2.72 times less risky than YOMA STRATEGIC. It trades about 0.02 of its potential returns per unit of risk. YOMA STRATEGIC HLDG is currently generating about 0.0 per unit of risk. If you would invest 1,020 in Armada Hflr Pr on September 19, 2024 and sell it today you would earn a total of 79.00 from holding Armada Hflr Pr or generate 7.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.83% |
| Values | Daily Returns |
Armada Hflr Pr vs. YOMA STRATEGIC HLDG
Performance |
| Timeline |
| Armada Hflr Pr |
| YOMA STRATEGIC HLDG |
Armada Hflr and YOMA STRATEGIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and YOMA STRATEGIC
The main advantage of trading using opposite Armada Hflr and YOMA STRATEGIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, YOMA STRATEGIC 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 YOMA STRATEGIC will offset losses from the drop in YOMA STRATEGIC'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 |
| YOMA STRATEGIC vs. Solstad Offshore ASA | YOMA STRATEGIC vs. INTER CARS SA | YOMA STRATEGIC vs. Commercial Vehicle Group | YOMA STRATEGIC vs. Geely Automobile Holdings |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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