Correlation Between Artis REIT and Armada Hflr
Can any of the company-specific risk be diversified away by investing in both Artis REIT and Armada Hflr 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 Artis REIT and Armada Hflr into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artis REIT and Armada Hflr Pr, you can compare the effects of market volatilities on Artis REIT and Armada Hflr 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 Artis REIT with a short position of Armada Hflr. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artis REIT and Armada Hflr.
Diversification Opportunities for Artis REIT and Armada Hflr
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Artis and Armada is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Artis REIT and Armada Hflr Pr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Armada Hflr Pr and Artis REIT 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 Artis REIT are associated (or correlated) with Armada Hflr. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Armada Hflr Pr has no effect on the direction of Artis REIT i.e., Artis REIT and Armada Hflr go up and down completely randomly.
Pair Corralation between Artis REIT and Armada Hflr
Assuming the 90 days horizon Artis REIT is expected to under-perform the Armada Hflr. But the otc stock apears to be less risky and, when comparing its historical volatility, Artis REIT is 1.17 times less risky than Armada Hflr. The otc stock trades about -0.19 of its potential returns per unit of risk. The Armada Hflr Pr is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 1,082 in Armada Hflr Pr on October 26, 2024 and sell it today you would lose (98.00) from holding Armada Hflr Pr or give up 9.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artis REIT vs. Armada Hflr Pr
Performance |
| Timeline |
| Artis REIT |
| Armada Hflr Pr |
Artis REIT and Armada Hflr Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artis REIT and Armada Hflr
The main advantage of trading using opposite Artis REIT and Armada Hflr positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artis REIT position performs unexpectedly, Armada Hflr 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 Armada Hflr will offset losses from the drop in Armada Hflr's long position.| Artis REIT vs. Armada Hoffler Properties | Artis REIT vs. Ascott Residence Trust | Artis REIT vs. Armada Hflr Pr | Artis REIT vs. Modiv Inc |
| Armada Hflr vs. Modiv Inc | Armada Hflr vs. Precinct Properties New | Armada Hflr vs. Global Net Lease | Armada Hflr vs. NexPoint Diversified Real |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |