Correlation Between Hannon Armstrong and Uniti
Can any of the company-specific risk be diversified away by investing in both Hannon Armstrong and Uniti 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 Hannon Armstrong and Uniti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hannon Armstrong Sustainable and Uniti Group, you can compare the effects of market volatilities on Hannon Armstrong and Uniti 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 Hannon Armstrong with a short position of Uniti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hannon Armstrong and Uniti.
Diversification Opportunities for Hannon Armstrong and Uniti
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hannon and Uniti is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Hannon Armstrong Sustainable and Uniti Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uniti Group and Hannon Armstrong 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 Hannon Armstrong Sustainable are associated (or correlated) with Uniti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uniti Group has no effect on the direction of Hannon Armstrong i.e., Hannon Armstrong and Uniti go up and down completely randomly.
Pair Corralation between Hannon Armstrong and Uniti
Given the investment horizon of 90 days Hannon Armstrong is expected to generate 4.08 times less return on investment than Uniti. But when comparing it to its historical volatility, Hannon Armstrong Sustainable is 1.2 times less risky than Uniti. It trades about 0.01 of its potential returns per unit of risk. Uniti Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 525.00 in Uniti Group on August 27, 2024 and sell it today you would earn a total of 86.00 from holding Uniti Group or generate 16.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hannon Armstrong Sustainable vs. Uniti Group
Performance |
| Timeline |
| Hannon Armstrong Sus |
| Uniti Group |
Hannon Armstrong and Uniti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hannon Armstrong and Uniti
The main advantage of trading using opposite Hannon Armstrong and Uniti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hannon Armstrong position performs unexpectedly, Uniti 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 Uniti will offset losses from the drop in Uniti's long position.| Hannon Armstrong vs. Equinix | Hannon Armstrong vs. Crown Castle | Hannon Armstrong vs. American Tower Corp | Hannon Armstrong vs. Iron Mountain Incorporated |
| Uniti vs. Digital Realty Trust | Uniti vs. Iron Mountain Incorporated | Uniti vs. Gaming Leisure Properties | Uniti vs. Crown Castle |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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