Correlation Between Armada Hflr and Presidio Property
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Presidio Property 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 Presidio Property 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 Presidio Property Trust, you can compare the effects of market volatilities on Armada Hflr and Presidio Property 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 Presidio Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Presidio Property.
Diversification Opportunities for Armada Hflr and Presidio Property
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Armada and Presidio is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Presidio Property Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Presidio Property Trust 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 Presidio Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Presidio Property Trust has no effect on the direction of Armada Hflr i.e., Armada Hflr and Presidio Property go up and down completely randomly.
Pair Corralation between Armada Hflr and Presidio Property
Considering the 90-day investment horizon Armada Hflr is expected to generate 27.36 times less return on investment than Presidio Property. But when comparing it to its historical volatility, Armada Hflr Pr is 3.7 times less risky than Presidio Property. It trades about 0.0 of its potential returns per unit of risk. Presidio Property Trust is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 89.00 in Presidio Property Trust on September 12, 2024 and sell it today you would lose (20.00) from holding Presidio Property Trust or give up 22.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Armada Hflr Pr vs. Presidio Property Trust
Performance |
| Timeline |
| Armada Hflr Pr |
| Presidio Property Trust |
Armada Hflr and Presidio Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Presidio Property
The main advantage of trading using opposite Armada Hflr and Presidio Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Presidio Property 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 Presidio Property will offset losses from the drop in Presidio Property'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 |
| Presidio Property vs. Investcorp Credit Management | Presidio Property vs. Medalist Diversified Reit | Presidio Property vs. Mingzhu Logistics Holdings |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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