Correlation Between Armada Hflr and AXA World
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and AXA World 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 AXA World 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 AXA World Funds, you can compare the effects of market volatilities on Armada Hflr and AXA World 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 AXA World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and AXA World.
Diversification Opportunities for Armada Hflr and AXA World
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Armada and AXA is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and AXA World Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXA World Funds 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 AXA World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXA World Funds has no effect on the direction of Armada Hflr i.e., Armada Hflr and AXA World go up and down completely randomly.
Pair Corralation between Armada Hflr and AXA World
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the AXA World. In addition to that, Armada Hflr is 3.5 times more volatile than AXA World Funds. It trades about -0.2 of its total potential returns per unit of risk. AXA World Funds is currently generating about 0.12 per unit of volatility. If you would invest 20,552 in AXA World Funds on December 27, 2024 and sell it today you would earn a total of 960.00 from holding AXA World Funds or generate 4.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Armada Hflr Pr vs. AXA World Funds
Performance |
Timeline |
Armada Hflr Pr |
AXA World Funds |
Armada Hflr and AXA World Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Armada Hflr and AXA World
The main advantage of trading using opposite Armada Hflr and AXA World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, AXA World 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 AXA World will offset losses from the drop in AXA World'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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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