Correlation Between Armada Hflr and Shenzhen SDG
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By analyzing existing cross correlation between Armada Hflr Pr and Shenzhen SDG Service, you can compare the effects of market volatilities on Armada Hflr and Shenzhen SDG 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 Armada Hflr with a short position of Shenzhen SDG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Shenzhen SDG.
Diversification Opportunities for Armada Hflr and Shenzhen SDG
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Armada and Shenzhen is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Shenzhen SDG Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen SDG Service and Armada Hflr 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 Armada Hflr Pr are associated (or correlated) with Shenzhen SDG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen SDG Service has no effect on the direction of Armada Hflr i.e., Armada Hflr and Shenzhen SDG go up and down completely randomly.
Pair Corralation between Armada Hflr and Shenzhen SDG
Considering the 90-day investment horizon Armada Hflr Pr is expected to generate 0.43 times more return on investment than Shenzhen SDG. However, Armada Hflr Pr is 2.3 times less risky than Shenzhen SDG. It trades about -0.21 of its potential returns per unit of risk. Shenzhen SDG Service is currently generating about -0.11 per unit of risk. If you would invest 1,100 in Armada Hflr Pr on September 25, 2024 and sell it today you would lose (63.00) from holding Armada Hflr Pr or give up 5.73% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
Armada Hflr Pr vs. Shenzhen SDG Service
Performance |
Timeline |
Armada Hflr Pr |
Shenzhen SDG Service |
Armada Hflr and Shenzhen SDG Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Armada Hflr and Shenzhen SDG
The main advantage of trading using opposite Armada Hflr and Shenzhen SDG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Shenzhen SDG 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 Shenzhen SDG will offset losses from the drop in Shenzhen SDG's long position.Armada Hflr vs. Modiv Inc | Armada Hflr vs. Precinct Properties New | Armada Hflr vs. Global Net Lease | Armada Hflr vs. NexPoint Diversified Real |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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