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
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Armada and SSgA is -0.46. 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. But the stock apears to be less risky and, when comparing its historical volatility, Armada Hflr Pr is 1.15 times less risky than SSgA SPDR. The stock trades about -0.06 of its potential returns per unit of risk. The SSgA SPDR ETFs is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 4,502 in SSgA SPDR ETFs on September 14, 2024 and sell it today you would earn a total of 16.00 from holding SSgA SPDR ETFs or generate 0.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| 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. SPDR Dow Jones | SSgA SPDR vs. iShares Core MSCI | SSgA SPDR vs. iShares SP 500 | SSgA SPDR vs. iShares Core MSCI |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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