Correlation Between Armada Hflr and Boston Partners

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

Diversification Opportunities for Armada Hflr and Boston Partners

-0.37

Correlation Coefficient

Armada Hflr  Boston Partners

Very good diversification

The 3 months correlation between Armada and Boston is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Boston Partners Longshort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Partners Longshort 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 Boston Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Partners Longshort has no effect on the direction of Armada Hflr i.e., Armada Hflr and Boston Partners go up and down completely randomly.

Pair Corralation between Armada Hflr and Boston Partners

Considering the 90-day investment horizon Armada Hflr Pr is expected to generate 0.81 times more return on investment than Boston Partners. However, Armada Hflr Pr is 1.24 times less risky than Boston Partners. It trades about 0.02 of its potential returns per unit of risk. Boston Partners Longshort is currently generating about -0.02 per unit of risk. If you would invest  1,062  in Armada Hflr Pr on September 14, 2024 and sell it today you would earn a total of  30.00  from holding Armada Hflr Pr or generate 2.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Armada Hflr Pr  vs.  Boston Partners Longshort

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.

Boston Partners Longshort

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Boston Partners Longshort has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Armada Hflr and Boston Partners

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

The idea behind Armada Hflr Pr and Boston Partners Longshort 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..