Correlation Between Armada Hflr and Warehouses
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Warehouses 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 Warehouses 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 Warehouses De Pauw, you can compare the effects of market volatilities on Armada Hflr and Warehouses 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 Warehouses. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Warehouses.
Diversification Opportunities for Armada Hflr and Warehouses
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Armada and Warehouses is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Warehouses De Pauw in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Warehouses De Pauw 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 Warehouses. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Warehouses De Pauw has no effect on the direction of Armada Hflr i.e., Armada Hflr and Warehouses go up and down completely randomly.
Pair Corralation between Armada Hflr and Warehouses
Considering the 90-day investment horizon Armada Hflr Pr is expected to generate 0.6 times more return on investment than Warehouses. However, Armada Hflr Pr is 1.66 times less risky than Warehouses. It trades about -0.07 of its potential returns per unit of risk. Warehouses De Pauw is currently generating about -0.09 per unit of risk. If you would invest 1,102 in Armada Hflr Pr on September 14, 2024 and sell it today you would lose (14.00) from holding Armada Hflr Pr or give up 1.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Armada Hflr Pr vs. Warehouses De Pauw
Performance |
| Timeline |
| Armada Hflr Pr |
| Warehouses De Pauw |
Armada Hflr and Warehouses Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Warehouses
The main advantage of trading using opposite Armada Hflr and Warehouses positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Warehouses 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 Warehouses will offset losses from the drop in Warehouses' 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 |
| Warehouses vs. Extra Space Storage | Warehouses vs. REXFORD INDREALTY DL 01 | Warehouses vs. CubeSmart | Warehouses vs. First Industrial Realty |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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