Correlation Between Ascott Residence and Armada Hflr
Can any of the company-specific risk be diversified away by investing in both Ascott Residence 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 Ascott Residence and Armada Hflr into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ascott Residence Trust and Armada Hflr Pr, you can compare the effects of market volatilities on Ascott Residence 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 Ascott Residence with a short position of Armada Hflr. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascott Residence and Armada Hflr.
Diversification Opportunities for Ascott Residence and Armada Hflr
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ascott and Armada is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Ascott Residence Trust 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 Ascott Residence 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 Ascott Residence Trust 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 Ascott Residence i.e., Ascott Residence and Armada Hflr go up and down completely randomly.
Pair Corralation between Ascott Residence and Armada Hflr
Assuming the 90 days horizon Ascott Residence is expected to generate 2.52 times less return on investment than Armada Hflr. But when comparing it to its historical volatility, Ascott Residence Trust is 1.34 times less risky than Armada Hflr. It trades about 0.01 of its potential returns per unit of risk. Armada Hflr Pr is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,049 in Armada Hflr Pr on August 31, 2024 and sell it today you would earn a total of 60.00 from holding Armada Hflr Pr or generate 5.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ascott Residence Trust vs. Armada Hflr Pr
Performance |
| Timeline |
| Ascott Residence Trust |
| Armada Hflr Pr |
Ascott Residence and Armada Hflr Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascott Residence and Armada Hflr
The main advantage of trading using opposite Ascott Residence and Armada Hflr positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascott Residence 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.| Ascott Residence vs. Armada Hoffler Properties | Ascott Residence vs. Artis REIT | Ascott Residence vs. Armada Hflr Pr | Ascott Residence 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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