Correlation Between Armada Hflr and Shin Ruenn

Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Shin Ruenn 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 Shin Ruenn 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 Shin Ruenn Development, you can compare the effects of market volatilities on Armada Hflr and Shin Ruenn 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 Shin Ruenn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Shin Ruenn.

Diversification Opportunities for Armada Hflr and Shin Ruenn

0.61

Correlation Coefficient

Armada Hflr  Shin Ruenn

Poor diversification

The 3 months correlation between Armada and Shin is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Shin Ruenn Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shin Ruenn Development 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 Shin Ruenn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shin Ruenn Development has no effect on the direction of Armada Hflr i.e., Armada Hflr and Shin Ruenn go up and down completely randomly.

Pair Corralation between Armada Hflr and Shin Ruenn

Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Shin Ruenn. But the stock apears to be less risky and, when comparing its historical volatility, Armada Hflr Pr is 1.56 times less risky than Shin Ruenn. The stock trades about -0.21 of its potential returns per unit of risk. The Shin Ruenn Development is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  5,930  in Shin Ruenn Development on September 21, 2024 and sell it today you would earn a total of  180.00  from holding Shin Ruenn Development or generate 3.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	91.3%
Values	Daily Returns

Armada Hflr Pr  vs.  Shin Ruenn Development

Armada Hflr Pr

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Armada Hflr Pr has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Shin Ruenn Development

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Shin Ruenn Development has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Armada Hflr and Shin Ruenn

The main advantage of trading using opposite Armada Hflr and Shin Ruenn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Shin Ruenn 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 Shin Ruenn will offset losses from the drop in Shin Ruenn's long position.

The idea behind Armada Hflr Pr and Shin Ruenn Development pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.