Correlation Between Gladstone Commercial and Armada Hoffler
Can any of the company-specific risk be diversified away by investing in both Gladstone Commercial 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 Gladstone Commercial and Armada Hoffler into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gladstone Commercial and Armada Hoffler Properties, you can compare the effects of market volatilities on Gladstone Commercial 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 Gladstone Commercial with a short position of Armada Hoffler. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Commercial and Armada Hoffler.
Diversification Opportunities for Gladstone Commercial and Armada Hoffler
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gladstone and Armada is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Commercial 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 Gladstone Commercial 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 Gladstone Commercial 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 Gladstone Commercial i.e., Gladstone Commercial and Armada Hoffler go up and down completely randomly.
Pair Corralation between Gladstone Commercial and Armada Hoffler
Given the investment horizon of 90 days Gladstone Commercial is expected to generate 1.43 times more return on investment than Armada Hoffler. However, Gladstone Commercial is 1.43 times more volatile than Armada Hoffler Properties. It trades about 0.09 of its potential returns per unit of risk. Armada Hoffler Properties is currently generating about 0.04 per unit of risk. If you would invest 1,045 in Gladstone Commercial on August 27, 2024 and sell it today you would earn a total of 664.00 from holding Gladstone Commercial or generate 63.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gladstone Commercial vs. Armada Hoffler Properties
Performance |
| Timeline |
| Gladstone Commercial |
| Armada Hoffler Properties |
Gladstone Commercial and Armada Hoffler Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gladstone Commercial and Armada Hoffler
The main advantage of trading using opposite Gladstone Commercial and Armada Hoffler positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Commercial 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.| Gladstone Commercial vs. Gladstone Investment | Gladstone Commercial vs. Gladstone Capital | Gladstone Commercial vs. LTC Properties | Gladstone Commercial vs. Dynex Capital |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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