Correlation Between Armada Hflr and Palmer Square
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Palmer Square 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 Palmer Square 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 Palmer Square Funds, you can compare the effects of market volatilities on Armada Hflr and Palmer Square 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 Palmer Square. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Palmer Square.
Diversification Opportunities for Armada Hflr and Palmer Square
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Armada and Palmer is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Palmer Square Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Palmer Square Funds 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 Palmer Square. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Palmer Square Funds has no effect on the direction of Armada Hflr i.e., Armada Hflr and Palmer Square go up and down completely randomly.
Pair Corralation between Armada Hflr and Palmer Square
Considering the 90-day investment horizon Armada Hflr is expected to generate 678.75 times less return on investment than Palmer Square. But when comparing it to its historical volatility, Armada Hflr Pr is 71.57 times less risky than Palmer Square. It trades about 0.01 of its potential returns per unit of risk. Palmer Square Funds is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Palmer Square Funds on October 22, 2024 and sell it today you would earn a total of 2,019 from holding Palmer Square Funds or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 39.91% |
| Values | Daily Returns |
Armada Hflr Pr vs. Palmer Square Funds
Performance |
| Timeline |
| Armada Hflr Pr |
| Palmer Square Funds |
Armada Hflr and Palmer Square Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Palmer Square
The main advantage of trading using opposite Armada Hflr and Palmer Square positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Palmer Square 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 Palmer Square will offset losses from the drop in Palmer Square'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 |
| Palmer Square vs. VanEck Vectors Moodys | Palmer Square vs. Valued Advisers Trust | Palmer Square vs. Xtrackers California Municipal | Palmer Square vs. Principal Exchange Traded Funds |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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