Correlation Between Brockhaus Capital and ARMADA HOFFLER
Can any of the company-specific risk be diversified away by investing in both Brockhaus Capital and ARMADA HOFFLER 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 Brockhaus Capital and ARMADA HOFFLER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brockhaus Capital Management and ARMADA HOFFLER PR, you can compare the effects of market volatilities on Brockhaus Capital and ARMADA HOFFLER 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 Brockhaus Capital with a short position of ARMADA HOFFLER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brockhaus Capital and ARMADA HOFFLER.
Diversification Opportunities for Brockhaus Capital and ARMADA HOFFLER
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Brockhaus and ARMADA is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Brockhaus Capital Management and ARMADA HOFFLER PR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ARMADA HOFFLER PR and Brockhaus Capital 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 Brockhaus Capital Management are associated (or correlated) with ARMADA HOFFLER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ARMADA HOFFLER PR has no effect on the direction of Brockhaus Capital i.e., Brockhaus Capital and ARMADA HOFFLER go up and down completely randomly.
Pair Corralation between Brockhaus Capital and ARMADA HOFFLER
Assuming the 90 days trading horizon Brockhaus Capital Management is expected to generate 1.3 times more return on investment than ARMADA HOFFLER. However, Brockhaus Capital is 1.3 times more volatile than ARMADA HOFFLER PR. It trades about 0.15 of its potential returns per unit of risk. ARMADA HOFFLER PR is currently generating about -0.19 per unit of risk. If you would invest 2,270 in Brockhaus Capital Management on November 3, 2024 and sell it today you would earn a total of 140.00 from holding Brockhaus Capital Management or generate 6.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Brockhaus Capital Management vs. ARMADA HOFFLER PR
Performance |
| Timeline |
| Brockhaus Capital |
| ARMADA HOFFLER PR |
Brockhaus Capital and ARMADA HOFFLER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brockhaus Capital and ARMADA HOFFLER
The main advantage of trading using opposite Brockhaus Capital and ARMADA HOFFLER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brockhaus Capital position performs unexpectedly, ARMADA HOFFLER 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 HOFFLER will offset losses from the drop in ARMADA HOFFLER's long position.| Brockhaus Capital vs. The Home Depot | Brockhaus Capital vs. United Insurance Holdings | Brockhaus Capital vs. KENEDIX OFFICE INV | Brockhaus Capital vs. Goosehead Insurance |
| ARMADA HOFFLER vs. US Physical Therapy | ARMADA HOFFLER vs. SEKISUI CHEMICAL | ARMADA HOFFLER vs. Universal Health Realty | ARMADA HOFFLER vs. CarsalesCom |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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