Correlation Between Armada Hflr and Bull Profund

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

Diversification Opportunities for Armada Hflr and Bull Profund

0.18

Correlation Coefficient

Armada Hflr  Bull Profund

Average diversification

The 3 months correlation between Armada and Bull is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Bull Profund Investor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bull Profund Investor 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 Bull Profund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bull Profund Investor has no effect on the direction of Armada Hflr i.e., Armada Hflr and Bull Profund go up and down completely randomly.

Pair Corralation between Armada Hflr and Bull Profund

Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Bull Profund. In addition to that, Armada Hflr is 1.65 times more volatile than Bull Profund Investor. It trades about -0.08 of its total potential returns per unit of risk. Bull Profund Investor is currently generating about -0.01 per unit of volatility. If you would invest  7,413  in Bull Profund Investor on October 22, 2024 and sell it today you would lose (20.00) from holding Bull Profund Investor or give up 0.27% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	94.74%
Values	Daily Returns

Armada Hflr Pr  vs.  Bull Profund Investor

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 latest weak performance, the Stock's technical indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Bull Profund Investor

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bull Profund Investor are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Bull Profund is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Armada Hflr and Bull Profund

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

The idea behind Armada Hflr Pr and Bull Profund Investor 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.