Correlation Between Armada Hflr and Global X
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By analyzing existing cross correlation between Armada Hflr Pr and Global X NASDAQ, you can compare the effects of market volatilities on Armada Hflr and Global X 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 Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Global X.
Diversification Opportunities for Armada Hflr and Global X
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Armada and Global is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Global X NASDAQ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X NASDAQ 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 Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X NASDAQ has no effect on the direction of Armada Hflr i.e., Armada Hflr and Global X go up and down completely randomly.
Pair Corralation between Armada Hflr and Global X
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Global X. But the stock apears to be less risky and, when comparing its historical volatility, Armada Hflr Pr is 1.06 times less risky than Global X. The stock trades about -0.07 of its potential returns per unit of risk. The Global X NASDAQ is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,635 in Global X NASDAQ on September 14, 2024 and sell it today you would earn a total of 10.00 from holding Global X NASDAQ or generate 0.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Armada Hflr Pr vs. Global X NASDAQ
Performance |
| Timeline |
| Armada Hflr Pr |
| Global X NASDAQ |
Armada Hflr and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Global X
The main advantage of trading using opposite Armada Hflr and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X'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 |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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