Correlation Between British Land and Armada Hoffler
Can any of the company-specific risk be diversified away by investing in both British Land 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 British Land and Armada Hoffler into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between British Land and Armada Hoffler Properties, you can compare the effects of market volatilities on British Land 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 British Land with a short position of Armada Hoffler. Check out your portfolio center. Please also check ongoing floating volatility patterns of British Land and Armada Hoffler.
Diversification Opportunities for British Land and Armada Hoffler
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between British and Armada is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding British Land and Armada Hoffler Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Armada Hoffler Properties and British Land 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 British Land 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 Properties has no effect on the direction of British Land i.e., British Land and Armada Hoffler go up and down completely randomly.
Pair Corralation between British Land and Armada Hoffler
Assuming the 90 days horizon British Land is expected to under-perform the Armada Hoffler. In addition to that, British Land is 1.54 times more volatile than Armada Hoffler Properties. It trades about -0.15 of its total potential returns per unit of risk. Armada Hoffler Properties is currently generating about 0.0 per unit of volatility. If you would invest 2,365 in Armada Hoffler Properties on September 12, 2024 and sell it today you would lose (5.00) from holding Armada Hoffler Properties or give up 0.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
British Land vs. Armada Hoffler Properties
Performance |
| Timeline |
| British Land |
| Armada Hoffler Properties |
British Land and Armada Hoffler Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with British Land and Armada Hoffler
The main advantage of trading using opposite British Land and Armada Hoffler positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if British Land 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.| British Land vs. Global Net Lease, | British Land vs. VICI Properties | British Land vs. British Land | British Land vs. Highlands REIT |
| Armada Hoffler vs. Armada Hflr Pr | Armada Hoffler vs. Aquagold International | Armada Hoffler vs. Morningstar Unconstrained Allocation | Armada Hoffler vs. Thrivent High Yield |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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