Correlation Between Armada Hflr and Freedom Holdings
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Freedom Holdings 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 Freedom Holdings 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 Freedom Holdings, you can compare the effects of market volatilities on Armada Hflr and Freedom Holdings 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 Freedom Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Freedom Holdings.
Diversification Opportunities for Armada Hflr and Freedom Holdings
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Armada and Freedom is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Freedom Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freedom Holdings 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 Freedom Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freedom Holdings has no effect on the direction of Armada Hflr i.e., Armada Hflr and Freedom Holdings go up and down completely randomly.
Pair Corralation between Armada Hflr and Freedom Holdings
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Freedom Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Armada Hflr Pr is 42.52 times less risky than Freedom Holdings. The stock trades about -0.37 of its potential returns per unit of risk. The Freedom Holdings is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 16.00 in Freedom Holdings on December 5, 2024 and sell it today you would earn a total of 7.00 from holding Freedom Holdings or generate 43.75% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.45% |
Values | Daily Returns |
Armada Hflr Pr vs. Freedom Holdings
Performance |
Timeline |
Armada Hflr Pr |
Freedom Holdings |
Armada Hflr and Freedom Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Armada Hflr and Freedom Holdings
The main advantage of trading using opposite Armada Hflr and Freedom Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Freedom Holdings 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 Freedom Holdings will offset losses from the drop in Freedom Holdings' 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 |
Freedom Holdings vs. RTL Group SA | Freedom Holdings vs. ITV plc | Freedom Holdings vs. ITV PLC ADR | Freedom Holdings vs. iHeartMedia |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |