Correlation Between Armada Hflr and Radian
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Radian 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 Radian 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 Radian Group, you can compare the effects of market volatilities on Armada Hflr and Radian 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 Radian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Radian.
Diversification Opportunities for Armada Hflr and Radian
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Armada and Radian is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Radian Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radian Group 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 Radian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radian Group has no effect on the direction of Armada Hflr i.e., Armada Hflr and Radian go up and down completely randomly.
Pair Corralation between Armada Hflr and Radian
Considering the 90-day investment horizon Armada Hflr Pr is expected to generate 0.64 times more return on investment than Radian. However, Armada Hflr Pr is 1.56 times less risky than Radian. It trades about 0.03 of its potential returns per unit of risk. Radian Group is currently generating about -0.06 per unit of risk. If you would invest 1,087 in Armada Hflr Pr on September 15, 2024 and sell it today you would earn a total of 5.00 from holding Armada Hflr Pr or generate 0.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Armada Hflr Pr vs. Radian Group
Performance |
| Timeline |
| Armada Hflr Pr |
| Radian Group |
Armada Hflr and Radian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Radian
The main advantage of trading using opposite Armada Hflr and Radian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Radian 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 Radian will offset losses from the drop in Radian'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 |
| Radian vs. First American Financial | Radian vs. MGIC Investment | Radian vs. Lancashire Holdings Limited | Radian vs. Trisura Group |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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