Correlation Between Armada Hflr and Tsinghuatongfang
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By analyzing existing cross correlation between Armada Hflr Pr and Tsinghuatongfang Co, you can compare the effects of market volatilities on Armada Hflr and Tsinghuatongfang 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 Tsinghuatongfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Tsinghuatongfang.
Diversification Opportunities for Armada Hflr and Tsinghuatongfang
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Armada and Tsinghuatongfang is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Tsinghuatongfang Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsinghuatongfang 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 Tsinghuatongfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tsinghuatongfang has no effect on the direction of Armada Hflr i.e., Armada Hflr and Tsinghuatongfang go up and down completely randomly.
Pair Corralation between Armada Hflr and Tsinghuatongfang
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Tsinghuatongfang. But the stock apears to be less risky and, when comparing its historical volatility, Armada Hflr Pr is 2.47 times less risky than Tsinghuatongfang. The stock trades about -0.15 of its potential returns per unit of risk. The Tsinghuatongfang Co is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 527.00 in Tsinghuatongfang Co on September 24, 2024 and sell it today you would earn a total of 237.00 from holding Tsinghuatongfang Co or generate 44.97% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 92.31% |
Values | Daily Returns |
Armada Hflr Pr vs. Tsinghuatongfang Co
Performance |
Timeline |
Armada Hflr Pr |
Tsinghuatongfang |
Armada Hflr and Tsinghuatongfang Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Armada Hflr and Tsinghuatongfang
The main advantage of trading using opposite Armada Hflr and Tsinghuatongfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Tsinghuatongfang 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 Tsinghuatongfang will offset losses from the drop in Tsinghuatongfang'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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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