Correlation Between Armada Hflr and Mainstay Epoch
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Mainstay Epoch 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 Mainstay Epoch 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 Mainstay Epoch Global, you can compare the effects of market volatilities on Armada Hflr and Mainstay Epoch 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 Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Mainstay Epoch.
Diversification Opportunities for Armada Hflr and Mainstay Epoch
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Armada and Mainstay is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Mainstay Epoch Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Epoch Global 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 Mainstay Epoch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Epoch Global has no effect on the direction of Armada Hflr i.e., Armada Hflr and Mainstay Epoch go up and down completely randomly.
Pair Corralation between Armada Hflr and Mainstay Epoch
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Mainstay Epoch. In addition to that, Armada Hflr is 2.27 times more volatile than Mainstay Epoch Global. It trades about 0.0 of its total potential returns per unit of risk. Mainstay Epoch Global is currently generating about 0.05 per unit of volatility. If you would invest 1,910 in Mainstay Epoch Global on October 12, 2024 and sell it today you would earn a total of 299.00 from holding Mainstay Epoch Global or generate 15.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Armada Hflr Pr vs. Mainstay Epoch Global
Performance |
Timeline |
Armada Hflr Pr |
Mainstay Epoch Global |
Armada Hflr and Mainstay Epoch Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Armada Hflr and Mainstay Epoch
The main advantage of trading using opposite Armada Hflr and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Mainstay Epoch 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 Mainstay Epoch will offset losses from the drop in Mainstay Epoch'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 CEOs Directory module to screen CEOs from public companies around the world.
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