Correlation Between Armada Hflr and Outfront Media
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Outfront Media 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 Outfront Media 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 Outfront Media, you can compare the effects of market volatilities on Armada Hflr and Outfront Media 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 Outfront Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Outfront Media.
Diversification Opportunities for Armada Hflr and Outfront Media
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Armada and Outfront is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Outfront Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Outfront Media 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 Outfront Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Outfront Media has no effect on the direction of Armada Hflr i.e., Armada Hflr and Outfront Media go up and down completely randomly.
Pair Corralation between Armada Hflr and Outfront Media
Considering the 90-day investment horizon Armada Hflr is expected to generate 3.44 times less return on investment than Outfront Media. But when comparing it to its historical volatility, Armada Hflr Pr is 1.62 times less risky than Outfront Media. It trades about 0.01 of its potential returns per unit of risk. Outfront Media is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,526 in Outfront Media on August 23, 2024 and sell it today you would earn a total of 368.00 from holding Outfront Media or generate 24.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Armada Hflr Pr vs. Outfront Media
Performance |
| Timeline |
| Armada Hflr Pr |
| Outfront Media |
Armada Hflr and Outfront Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Outfront Media
The main advantage of trading using opposite Armada Hflr and Outfront Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Outfront Media 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 Outfront Media will offset losses from the drop in Outfront Media's long position.| Armada Hflr vs. Modiv Inc | Armada Hflr vs. Global Net Lease | Armada Hflr vs. NexPoint Diversified Real | Armada Hflr vs. Essential Properties Realty |
| Outfront Media vs. PotlatchDeltic Corp | Outfront Media vs. Gaming Leisure Properties | Outfront Media vs. Rayonier | Outfront Media vs. Weyerhaeuser |
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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