Correlation Between Armada Hflr and TD Active
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and TD Active 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 TD Active 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 TD Active Global, you can compare the effects of market volatilities on Armada Hflr and TD Active 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 TD Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and TD Active.
Diversification Opportunities for Armada Hflr and TD Active
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Armada and TGFI is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and TD Active Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TD Active Global 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 TD Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TD Active Global has no effect on the direction of Armada Hflr i.e., Armada Hflr and TD Active go up and down completely randomly.
Pair Corralation between Armada Hflr and TD Active
Considering the 90-day investment horizon Armada Hflr Pr is expected to generate about the same return on investment as TD Active Global. However, Armada Hflr is 3.54 times more volatile than TD Active Global. It trades about 0.02 of its potential returns per unit of risk. TD Active Global is currently producing about 0.06 per unit of risk. If you would invest 1,807 in TD Active Global on September 14, 2024 and sell it today you would earn a total of 248.00 from holding TD Active Global or generate 13.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Armada Hflr Pr vs. TD Active Global
Performance |
| Timeline |
| Armada Hflr Pr |
| TD Active Global |
Armada Hflr and TD Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and TD Active
The main advantage of trading using opposite Armada Hflr and TD Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, TD Active 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 TD Active will offset losses from the drop in TD Active'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 |
| TD Active vs. TD Active High | TD Active vs. TD Q Global | TD Active vs. TD Active Global | TD Active vs. TD Q Canadian |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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