Correlation Between Armada Hflr and Metalla Royalty
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Metalla Royalty 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 Metalla Royalty 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 Metalla Royalty Streaming, you can compare the effects of market volatilities on Armada Hflr and Metalla Royalty 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 Metalla Royalty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Metalla Royalty.
Diversification Opportunities for Armada Hflr and Metalla Royalty
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Armada and Metalla is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Metalla Royalty Streaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metalla Royalty Streaming 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 Metalla Royalty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metalla Royalty Streaming has no effect on the direction of Armada Hflr i.e., Armada Hflr and Metalla Royalty go up and down completely randomly.
Pair Corralation between Armada Hflr and Metalla Royalty
Considering the 90-day investment horizon Armada Hflr is expected to generate 1.85 times less return on investment than Metalla Royalty. But when comparing it to its historical volatility, Armada Hflr Pr is 2.39 times less risky than Metalla Royalty. It trades about 0.03 of its potential returns per unit of risk. Metalla Royalty Streaming is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 247.00 in Metalla Royalty Streaming on September 15, 2024 and sell it today you would earn a total of 11.00 from holding Metalla Royalty Streaming or generate 4.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.82% |
| Values | Daily Returns |
Armada Hflr Pr vs. Metalla Royalty Streaming
Performance |
| Timeline |
| Armada Hflr Pr |
| Metalla Royalty Streaming |
Armada Hflr and Metalla Royalty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Metalla Royalty
The main advantage of trading using opposite Armada Hflr and Metalla Royalty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Metalla Royalty 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 Metalla Royalty will offset losses from the drop in Metalla Royalty'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 |
| Metalla Royalty vs. MGIC INVESTMENT | Metalla Royalty vs. United Insurance Holdings | Metalla Royalty vs. AGNC INVESTMENT | Metalla Royalty vs. REGAL ASIAN INVESTMENTS |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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