Correlation Between Armada Hflr and Big Screen
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Big Screen 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 Big Screen 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 Big Screen Entertainment, you can compare the effects of market volatilities on Armada Hflr and Big Screen 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 Big Screen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Big Screen.
Diversification Opportunities for Armada Hflr and Big Screen
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Armada and Big is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Big Screen Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Big Screen Entertainment 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 Big Screen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Big Screen Entertainment has no effect on the direction of Armada Hflr i.e., Armada Hflr and Big Screen go up and down completely randomly.
Pair Corralation between Armada Hflr and Big Screen
Considering the 90-day investment horizon Armada Hflr Pr is expected to generate 0.21 times more return on investment than Big Screen. However, Armada Hflr Pr is 4.79 times less risky than Big Screen. It trades about 0.03 of its potential returns per unit of risk. Big Screen Entertainment is currently generating about -0.11 per unit of risk. If you would invest 1,087 in Armada Hflr Pr on September 15, 2024 and sell it today you would earn a total of 5.00 from holding Armada Hflr Pr or generate 0.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
Armada Hflr Pr vs. Big Screen Entertainment
Performance |
Timeline |
Armada Hflr Pr |
Big Screen Entertainment |
Armada Hflr and Big Screen Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Armada Hflr and Big Screen
The main advantage of trading using opposite Armada Hflr and Big Screen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Big Screen 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 Big Screen will offset losses from the drop in Big Screen'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 |
Big Screen vs. Roku Inc | Big Screen vs. SNM Gobal Holdings | Big Screen vs. Seven Arts Entertainment | Big Screen vs. All For One |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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