Correlation Between Fibra UNO and Armada Hoffler
Can any of the company-specific risk be diversified away by investing in both Fibra UNO 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 Fibra UNO and Armada Hoffler into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fibra UNO and Armada Hoffler Properties, you can compare the effects of market volatilities on Fibra UNO 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 Fibra UNO with a short position of Armada Hoffler. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fibra UNO and Armada Hoffler.
Diversification Opportunities for Fibra UNO and Armada Hoffler
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fibra and Armada is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Fibra UNO 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 Fibra UNO 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 Fibra UNO 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 Fibra UNO i.e., Fibra UNO and Armada Hoffler go up and down completely randomly.
Pair Corralation between Fibra UNO and Armada Hoffler
Assuming the 90 days horizon Fibra UNO is expected to generate 4.16 times more return on investment than Armada Hoffler. However, Fibra UNO is 4.16 times more volatile than Armada Hoffler Properties. It trades about 0.01 of its potential returns per unit of risk. Armada Hoffler Properties is currently generating about 0.01 per unit of risk. If you would invest 122.00 in Fibra UNO on January 11, 2025 and sell it today you would lose (12.00) from holding Fibra UNO or give up 9.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 85.37% |
| Values | Daily Returns |
Fibra UNO vs. Armada Hoffler Properties
Performance |
| Timeline |
| Fibra UNO |
| Armada Hoffler Properties |
Fibra UNO and Armada Hoffler Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fibra UNO and Armada Hoffler
The main advantage of trading using opposite Fibra UNO and Armada Hoffler positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fibra UNO 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.| Fibra UNO vs. British Land | Fibra UNO vs. Global Net Lease, | Fibra UNO vs. VICI Properties | Fibra UNO vs. Highlands REIT |
| Armada Hoffler vs. Artis REIT | Armada Hoffler vs. Ascott Residence Trust | Armada Hoffler vs. Armada Hflr Pr |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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