Correlation Between Armada Hflr and Hartalega Holdings
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Hartalega Holdings 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 Armada Hflr and Hartalega Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Armada Hflr Pr and Hartalega Holdings Bhd, you can compare the effects of market volatilities on Armada Hflr and Hartalega Holdings 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 Hartalega Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Hartalega Holdings.
Diversification Opportunities for Armada Hflr and Hartalega Holdings
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Armada and Hartalega is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Hartalega Holdings Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartalega Holdings Bhd 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 Hartalega Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartalega Holdings Bhd has no effect on the direction of Armada Hflr i.e., Armada Hflr and Hartalega Holdings go up and down completely randomly.
Pair Corralation between Armada Hflr and Hartalega Holdings
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Hartalega Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Armada Hflr Pr is 1.67 times less risky than Hartalega Holdings. The stock trades about -0.27 of its potential returns per unit of risk. The Hartalega Holdings Bhd is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 339.00 in Hartalega Holdings Bhd on September 26, 2024 and sell it today you would earn a total of 45.00 from holding Hartalega Holdings Bhd or generate 13.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 91.3% |
Values | Daily Returns |
Armada Hflr Pr vs. Hartalega Holdings Bhd
Performance |
Timeline |
Armada Hflr Pr |
Hartalega Holdings Bhd |
Armada Hflr and Hartalega Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Armada Hflr and Hartalega Holdings
The main advantage of trading using opposite Armada Hflr and Hartalega Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Hartalega Holdings 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 Hartalega Holdings will offset losses from the drop in Hartalega Holdings' long position.Armada Hflr vs. Realty Income | Armada Hflr vs. Park Hotels Resorts | Armada Hflr vs. Power REIT | Armada Hflr vs. Urban Edge Properties |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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