Correlation Between Armada Hflr and Sextant Growth
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Sextant Growth 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 Sextant Growth 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 Sextant Growth Fund, you can compare the effects of market volatilities on Armada Hflr and Sextant Growth 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 Sextant Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Sextant Growth.
Diversification Opportunities for Armada Hflr and Sextant Growth
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Armada and Sextant is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Sextant Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sextant Growth 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 Sextant Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sextant Growth has no effect on the direction of Armada Hflr i.e., Armada Hflr and Sextant Growth go up and down completely randomly.
Pair Corralation between Armada Hflr and Sextant Growth
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Sextant Growth. In addition to that, Armada Hflr is 1.63 times more volatile than Sextant Growth Fund. It trades about -0.08 of its total potential returns per unit of risk. Sextant Growth Fund is currently generating about -0.04 per unit of volatility. If you would invest 5,669 in Sextant Growth Fund on October 22, 2024 and sell it today you would lose (48.00) from holding Sextant Growth Fund or give up 0.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Armada Hflr Pr vs. Sextant Growth Fund
Performance |
| Timeline |
| Armada Hflr Pr |
| Sextant Growth |
Armada Hflr and Sextant Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Sextant Growth
The main advantage of trading using opposite Armada Hflr and Sextant Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Sextant Growth 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 Sextant Growth will offset losses from the drop in Sextant Growth'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 CEOs Directory module to screen CEOs from public companies around the world.
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