Correlation Between Armada Hflr and BNP PARIBAS
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and BNP PARIBAS 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 BNP PARIBAS 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 BNP PARIBAS ADR, you can compare the effects of market volatilities on Armada Hflr and BNP PARIBAS 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 BNP PARIBAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and BNP PARIBAS.
Diversification Opportunities for Armada Hflr and BNP PARIBAS
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Armada and BNP is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and BNP PARIBAS ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNP PARIBAS ADR 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 BNP PARIBAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BNP PARIBAS ADR has no effect on the direction of Armada Hflr i.e., Armada Hflr and BNP PARIBAS go up and down completely randomly.
Pair Corralation between Armada Hflr and BNP PARIBAS
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the BNP PARIBAS. In addition to that, Armada Hflr is 1.24 times more volatile than BNP PARIBAS ADR. It trades about -0.22 of its total potential returns per unit of risk. BNP PARIBAS ADR is currently generating about 0.32 per unit of volatility. If you would invest 2,900 in BNP PARIBAS ADR on December 26, 2024 and sell it today you would earn a total of 1,100 from holding BNP PARIBAS ADR or generate 37.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Armada Hflr Pr vs. BNP PARIBAS ADR
Performance |
Timeline |
Armada Hflr Pr |
BNP PARIBAS ADR |
Armada Hflr and BNP PARIBAS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Armada Hflr and BNP PARIBAS
The main advantage of trading using opposite Armada Hflr and BNP PARIBAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, BNP PARIBAS 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 BNP PARIBAS will offset losses from the drop in BNP PARIBAS'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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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