Correlation Between Armada Hflr and Teb Bancorp
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Teb Bancorp 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 Teb Bancorp 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 Teb Bancorp, you can compare the effects of market volatilities on Armada Hflr and Teb Bancorp 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 Teb Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Teb Bancorp.
Diversification Opportunities for Armada Hflr and Teb Bancorp
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Armada and Teb is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Teb Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teb Bancorp 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 Teb Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teb Bancorp has no effect on the direction of Armada Hflr i.e., Armada Hflr and Teb Bancorp go up and down completely randomly.
Pair Corralation between Armada Hflr and Teb Bancorp
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Teb Bancorp. But the stock apears to be less risky and, when comparing its historical volatility, Armada Hflr Pr is 3.63 times less risky than Teb Bancorp. The stock trades about -0.02 of its potential returns per unit of risk. The Teb Bancorp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 799.00 in Teb Bancorp on September 24, 2024 and sell it today you would lose (1.00) from holding Teb Bancorp or give up 0.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Armada Hflr Pr vs. Teb Bancorp
Performance |
| Timeline |
| Armada Hflr Pr |
| Teb Bancorp |
Armada Hflr and Teb Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Teb Bancorp
The main advantage of trading using opposite Armada Hflr and Teb Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Teb Bancorp 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 Teb Bancorp will offset losses from the drop in Teb Bancorp'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 |
| Teb Bancorp vs. Banco Bradesco SA | Teb Bancorp vs. Itau Unibanco Banco | Teb Bancorp vs. Lloyds Banking Group | Teb Bancorp vs. Deutsche Bank AG |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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