Correlation Between Armada Hflr and WB Burgers
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and WB Burgers 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 WB Burgers 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 WB Burgers Asia, you can compare the effects of market volatilities on Armada Hflr and WB Burgers 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 WB Burgers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and WB Burgers.
Diversification Opportunities for Armada Hflr and WB Burgers
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Armada and WBBA is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and WB Burgers Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WB Burgers Asia 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 WB Burgers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WB Burgers Asia has no effect on the direction of Armada Hflr i.e., Armada Hflr and WB Burgers go up and down completely randomly.
Pair Corralation between Armada Hflr and WB Burgers
Considering the 90-day investment horizon Armada Hflr is expected to generate 710.69 times less return on investment than WB Burgers. But when comparing it to its historical volatility, Armada Hflr Pr is 104.05 times less risky than WB Burgers. It trades about 0.02 of its potential returns per unit of risk. WB Burgers Asia is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 9.00 in WB Burgers Asia on September 12, 2024 and sell it today you would earn a total of 31.00 from holding WB Burgers Asia or generate 344.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 60.12% |
| Values | Daily Returns |
Armada Hflr Pr vs. WB Burgers Asia
Performance |
| Timeline |
| Armada Hflr Pr |
| WB Burgers Asia |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Armada Hflr and WB Burgers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and WB Burgers
The main advantage of trading using opposite Armada Hflr and WB Burgers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, WB Burgers 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 WB Burgers will offset losses from the drop in WB Burgers' 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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