Correlation Between Armada Hflr and Yihai International
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Yihai International 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 Yihai International 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 Yihai International Holding, you can compare the effects of market volatilities on Armada Hflr and Yihai International 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 Yihai International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Yihai International.
Diversification Opportunities for Armada Hflr and Yihai International
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Armada and Yihai is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Yihai International Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yihai International 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 Yihai International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yihai International has no effect on the direction of Armada Hflr i.e., Armada Hflr and Yihai International go up and down completely randomly.
Pair Corralation between Armada Hflr and Yihai International
Considering the 90-day investment horizon Armada Hflr is expected to generate 7.79 times less return on investment than Yihai International. But when comparing it to its historical volatility, Armada Hflr Pr is 3.27 times less risky than Yihai International. It trades about 0.02 of its potential returns per unit of risk. Yihai International Holding is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 112.00 in Yihai International Holding on September 13, 2024 and sell it today you would earn a total of 66.00 from holding Yihai International Holding or generate 58.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.02% |
| Values | Daily Returns |
Armada Hflr Pr vs. Yihai International Holding
Performance |
| Timeline |
| Armada Hflr Pr |
| Yihai International |
Armada Hflr and Yihai International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Yihai International
The main advantage of trading using opposite Armada Hflr and Yihai International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Yihai International 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 Yihai International will offset losses from the drop in Yihai International'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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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