Correlation Between Broadstone Net and Armada Hflr
Can any of the company-specific risk be diversified away by investing in both Broadstone Net 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 Broadstone Net and Armada Hflr into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Broadstone Net Lease and Armada Hflr Pr, you can compare the effects of market volatilities on Broadstone Net 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 Broadstone Net with a short position of Armada Hflr. Check out your portfolio center. Please also check ongoing floating volatility patterns of Broadstone Net and Armada Hflr.
Diversification Opportunities for Broadstone Net and Armada Hflr
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Broadstone and Armada is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Broadstone Net Lease 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 Broadstone Net 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 Broadstone Net Lease 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 Broadstone Net i.e., Broadstone Net and Armada Hflr go up and down completely randomly.
Pair Corralation between Broadstone Net and Armada Hflr
Considering the 90-day investment horizon Broadstone Net Lease is expected to generate 0.89 times more return on investment than Armada Hflr. However, Broadstone Net Lease is 1.12 times less risky than Armada Hflr. It trades about 0.03 of its potential returns per unit of risk. Armada Hflr Pr is currently generating about 0.02 per unit of risk. If you would invest 1,481 in Broadstone Net Lease on August 27, 2024 and sell it today you would earn a total of 244.00 from holding Broadstone Net Lease or generate 16.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Broadstone Net Lease vs. Armada Hflr Pr
Performance |
| Timeline |
| Broadstone Net Lease |
| Armada Hflr Pr |
Broadstone Net and Armada Hflr Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Broadstone Net and Armada Hflr
The main advantage of trading using opposite Broadstone Net and Armada Hflr positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Broadstone Net 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.| Broadstone Net vs. Armada Hflr Pr | Broadstone Net vs. Brightspire Capital | Broadstone Net vs. Safehold | Broadstone Net vs. Essential Properties Realty |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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