Correlation Between Armada Hflr and SSgA SPDR
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and SSgA SPDR 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 SSgA SPDR 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 SSgA SPDR ETFs, you can compare the effects of market volatilities on Armada Hflr and SSgA SPDR 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 SSgA SPDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and SSgA SPDR.
Diversification Opportunities for Armada Hflr and SSgA SPDR
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Armada and SSgA is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and SSgA SPDR ETFs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSgA SPDR ETFs 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 SSgA SPDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSgA SPDR ETFs has no effect on the direction of Armada Hflr i.e., Armada Hflr and SSgA SPDR go up and down completely randomly.
Pair Corralation between Armada Hflr and SSgA SPDR
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the SSgA SPDR. In addition to that, Armada Hflr is 1.3 times more volatile than SSgA SPDR ETFs. It trades about -0.01 of its total potential returns per unit of risk. SSgA SPDR ETFs is currently generating about 0.08 per unit of volatility. If you would invest 6,801 in SSgA SPDR ETFs on December 4, 2024 and sell it today you would earn a total of 3,983 from holding SSgA SPDR ETFs or generate 58.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.21% |
| Values | Daily Returns |
Armada Hflr Pr vs. SSgA SPDR ETFs
Performance |
| Timeline |
| Armada Hflr Pr |
| SSgA SPDR ETFs |
Armada Hflr and SSgA SPDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and SSgA SPDR
The main advantage of trading using opposite Armada Hflr and SSgA SPDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, SSgA SPDR 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 SSgA SPDR will offset losses from the drop in SSgA SPDR'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 |
| SSgA SPDR vs. SSgA SPDR ETFs | SSgA SPDR vs. SSgA SPDR ETFs | SSgA SPDR vs. SSgA SPDR ETFs | SSgA SPDR vs. SSgA SPDR ETFs |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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