Correlation Between Armada Hflr and BANCO
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By analyzing existing cross correlation between Armada Hflr Pr and BANCO SANTANDER SA, you can compare the effects of market volatilities on Armada Hflr and BANCO 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 BANCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and BANCO.
Diversification Opportunities for Armada Hflr and BANCO
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Armada and BANCO is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and BANCO SANTANDER SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANCO SANTANDER SA 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 BANCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANCO SANTANDER SA has no effect on the direction of Armada Hflr i.e., Armada Hflr and BANCO go up and down completely randomly.
Pair Corralation between Armada Hflr and BANCO
Considering the 90-day investment horizon Armada Hflr Pr is expected to generate 1.07 times more return on investment than BANCO. However, Armada Hflr is 1.07 times more volatile than BANCO SANTANDER SA. It trades about -0.09 of its potential returns per unit of risk. BANCO SANTANDER SA is currently generating about -0.16 per unit of risk. If you would invest 1,100 in Armada Hflr Pr on September 13, 2024 and sell it today you would lose (17.50) from holding Armada Hflr Pr or give up 1.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 77.27% |
| Values | Daily Returns |
Armada Hflr Pr vs. BANCO SANTANDER SA
Performance |
| Timeline |
| Armada Hflr Pr |
| BANCO SANTANDER SA |
Armada Hflr and BANCO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and BANCO
The main advantage of trading using opposite Armada Hflr and BANCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, BANCO 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 BANCO will offset losses from the drop in BANCO'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 |
| BANCO vs. AEP TEX INC | BANCO vs. US BANK NATIONAL | BANCO vs. Recursion Pharmaceuticals | BANCO vs. SoundHound AI |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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