Correlation Between Armada Hflr and Grupo Supervielle
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Grupo Supervielle 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 Grupo Supervielle 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 Grupo Supervielle SA, you can compare the effects of market volatilities on Armada Hflr and Grupo Supervielle 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 Grupo Supervielle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Grupo Supervielle.
Diversification Opportunities for Armada Hflr and Grupo Supervielle
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Armada and Grupo is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Grupo Supervielle SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Supervielle 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 Grupo Supervielle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Supervielle has no effect on the direction of Armada Hflr i.e., Armada Hflr and Grupo Supervielle go up and down completely randomly.
Pair Corralation between Armada Hflr and Grupo Supervielle
Considering the 90-day investment horizon Armada Hflr is expected to generate 46.46 times less return on investment than Grupo Supervielle. But when comparing it to its historical volatility, Armada Hflr Pr is 2.64 times less risky than Grupo Supervielle. It trades about 0.01 of its potential returns per unit of risk. Grupo Supervielle SA is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 113,550 in Grupo Supervielle SA on October 14, 2024 and sell it today you would earn a total of 350,450 from holding Grupo Supervielle SA or generate 308.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.92% |
| Values | Daily Returns |
Armada Hflr Pr vs. Grupo Supervielle SA
Performance |
| Timeline |
| Armada Hflr Pr |
| Grupo Supervielle |
Armada Hflr and Grupo Supervielle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Grupo Supervielle
The main advantage of trading using opposite Armada Hflr and Grupo Supervielle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Grupo Supervielle 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 Grupo Supervielle will offset losses from the drop in Grupo Supervielle'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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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