Correlation Between Presidio Property and Armada Hoffler
Can any of the company-specific risk be diversified away by investing in both Presidio Property 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 Presidio Property and Armada Hoffler into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Presidio Property Trust and Armada Hoffler Properties, you can compare the effects of market volatilities on Presidio Property 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 Presidio Property with a short position of Armada Hoffler. Check out your portfolio center. Please also check ongoing floating volatility patterns of Presidio Property and Armada Hoffler.
Diversification Opportunities for Presidio Property and Armada Hoffler
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Presidio and Armada is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Presidio Property Trust 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 Presidio Property 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 Presidio Property Trust 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 Presidio Property i.e., Presidio Property and Armada Hoffler go up and down completely randomly.
Pair Corralation between Presidio Property and Armada Hoffler
Given the investment horizon of 90 days Presidio Property Trust is expected to generate 6.01 times more return on investment than Armada Hoffler. However, Presidio Property is 6.01 times more volatile than Armada Hoffler Properties. It trades about 0.04 of its potential returns per unit of risk. Armada Hoffler Properties is currently generating about -0.14 per unit of risk. If you would invest 70.00 in Presidio Property Trust on October 26, 2024 and sell it today you would earn a total of 1.00 from holding Presidio Property Trust or generate 1.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Presidio Property Trust vs. Armada Hoffler Properties
Performance |
| Timeline |
| Presidio Property Trust |
| Armada Hoffler Properties |
Presidio Property and Armada Hoffler Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Presidio Property and Armada Hoffler
The main advantage of trading using opposite Presidio Property and Armada Hoffler positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Presidio Property 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.| Presidio Property vs. Investcorp Credit Management | Presidio Property vs. Medalist Diversified Reit | Presidio Property vs. Mingzhu Logistics Holdings |
| 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |