Correlation Between Armada Hflr and Cptl Grp

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

Diversification Opportunities for Armada Hflr and Cptl Grp

0.0

Correlation Coefficient

Armada Hflr  Cptl Grp

Pay attention - limited upside

The 3 months correlation between Armada and Cptl is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Cptl Grp Hldngs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cptl Grp Hldngs 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 Cptl Grp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cptl Grp Hldngs has no effect on the direction of Armada Hflr i.e., Armada Hflr and Cptl Grp go up and down completely randomly.

Pair Corralation between Armada Hflr and Cptl Grp

If you would invest  0.02  in Cptl Grp Hldngs on October 12, 2024 and sell it today you would earn a total of  0.00  from holding Cptl Grp Hldngs or generate 0.0% return on investment over 90 days.

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

Armada Hflr Pr  vs.  Cptl Grp Hldngs

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.

Cptl Grp Hldngs

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cptl Grp Hldngs has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical indicators, Cptl Grp is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Armada Hflr and Cptl Grp

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

The idea behind Armada Hflr Pr and Cptl Grp Hldngs 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.