Correlation Between Armada Hflr and CONAGRA FOODS
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and CONAGRA FOODS 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 CONAGRA FOODS 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 CONAGRA FOODS, you can compare the effects of market volatilities on Armada Hflr and CONAGRA FOODS 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 CONAGRA FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and CONAGRA FOODS.
Diversification Opportunities for Armada Hflr and CONAGRA FOODS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Armada and CONAGRA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and CONAGRA FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONAGRA FOODS 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 CONAGRA FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONAGRA FOODS has no effect on the direction of Armada Hflr i.e., Armada Hflr and CONAGRA FOODS go up and down completely randomly.
Pair Corralation between Armada Hflr and CONAGRA FOODS
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the CONAGRA FOODS. In addition to that, Armada Hflr is 1.12 times more volatile than CONAGRA FOODS. It trades about -0.21 of its total potential returns per unit of risk. CONAGRA FOODS is currently generating about 0.01 per unit of volatility. If you would invest 2,654 in CONAGRA FOODS on October 3, 2024 and sell it today you would earn a total of 2.00 from holding CONAGRA FOODS or generate 0.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 90.48% |
Values | Daily Returns |
Armada Hflr Pr vs. CONAGRA FOODS
Performance |
Timeline |
Armada Hflr Pr |
CONAGRA FOODS |
Armada Hflr and CONAGRA FOODS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Armada Hflr and CONAGRA FOODS
The main advantage of trading using opposite Armada Hflr and CONAGRA FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, CONAGRA FOODS 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 CONAGRA FOODS will offset losses from the drop in CONAGRA FOODS's long position.Armada Hflr vs. Sabra Healthcare REIT | Armada Hflr vs. Healthpeak Properties | Armada Hflr vs. Global Medical REIT | Armada Hflr vs. Ventas Inc |
CONAGRA FOODS vs. Apple Inc | CONAGRA FOODS vs. Apple Inc | CONAGRA FOODS vs. Apple Inc | CONAGRA FOODS vs. Apple Inc |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |