Correlation Between Armada Hflr and IShares Thematic
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and IShares Thematic 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 IShares Thematic 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 iShares Thematic Rotation, you can compare the effects of market volatilities on Armada Hflr and IShares Thematic 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 IShares Thematic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and IShares Thematic.
Diversification Opportunities for Armada Hflr and IShares Thematic
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Armada and IShares is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and iShares Thematic Rotation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Thematic Rotation 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 IShares Thematic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Thematic Rotation has no effect on the direction of Armada Hflr i.e., Armada Hflr and IShares Thematic go up and down completely randomly.
Pair Corralation between Armada Hflr and IShares Thematic
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the IShares Thematic. In addition to that, Armada Hflr is 1.15 times more volatile than iShares Thematic Rotation. It trades about -0.06 of its total potential returns per unit of risk. iShares Thematic Rotation is currently generating about 0.1 per unit of volatility. If you would invest 3,441 in iShares Thematic Rotation on September 13, 2024 and sell it today you would earn a total of 52.00 from holding iShares Thematic Rotation or generate 1.51% 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. iShares Thematic Rotation
Performance |
| Timeline |
| Armada Hflr Pr |
| iShares Thematic Rotation |
Armada Hflr and IShares Thematic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and IShares Thematic
The main advantage of trading using opposite Armada Hflr and IShares Thematic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, IShares Thematic 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 IShares Thematic will offset losses from the drop in IShares Thematic'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 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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