Correlation Between Thrivent High and Armada Hoffler
Can any of the company-specific risk be diversified away by investing in both Thrivent High 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 Thrivent High and Armada Hoffler into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thrivent High Yield and Armada Hoffler Properties, you can compare the effects of market volatilities on Thrivent High 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 Thrivent High with a short position of Armada Hoffler. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and Armada Hoffler.
Diversification Opportunities for Thrivent High and Armada Hoffler
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thrivent and Armada is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield 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 Thrivent High 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 Thrivent High Yield 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 Thrivent High i.e., Thrivent High and Armada Hoffler go up and down completely randomly.
Pair Corralation between Thrivent High and Armada Hoffler
Assuming the 90 days horizon Thrivent High is expected to generate 3.39 times less return on investment than Armada Hoffler. But when comparing it to its historical volatility, Thrivent High Yield is 8.01 times less risky than Armada Hoffler. It trades about 0.08 of its potential returns per unit of risk. Armada Hoffler Properties is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,340 in Armada Hoffler Properties on September 13, 2024 and sell it today you would earn a total of 16.00 from holding Armada Hoffler Properties or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrivent High Yield vs. Armada Hoffler Properties
Performance |
| Timeline |
| Thrivent High Yield |
| Armada Hoffler Properties |
Thrivent High and Armada Hoffler Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and Armada Hoffler
The main advantage of trading using opposite Thrivent High and Armada Hoffler positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High 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.| Thrivent High vs. Thrivent Limited Maturity | Thrivent High vs. Thrivent Income Fund | Thrivent High vs. Thrivent Large Cap | Thrivent High vs. Thrivent Large Cap |
| 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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