Correlation Between Armada Hflr and GOING PUBL

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

Diversification Opportunities for Armada Hflr and GOING PUBL

0.65

Correlation Coefficient

Armada Hflr  GOING PUBL

Poor diversification

The 3 months correlation between Armada and GOING is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and GOING PUBL MEDIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GOING PUBL MEDIA 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 GOING PUBL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GOING PUBL MEDIA has no effect on the direction of Armada Hflr i.e., Armada Hflr and GOING PUBL go up and down completely randomly.

Pair Corralation between Armada Hflr and GOING PUBL

Considering the 90-day investment horizon Armada Hflr Pr is expected to generate 1.16 times more return on investment than GOING PUBL. However, Armada Hflr is 1.16 times more volatile than GOING PUBL MEDIA. It trades about -0.04 of its potential returns per unit of risk. GOING PUBL MEDIA is currently generating about -0.31 per unit of risk. If you would invest  1,055  in Armada Hflr Pr on October 3, 2024 and sell it today you would lose (32.00) from holding Armada Hflr Pr or give up 3.03% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

Armada Hflr Pr  vs.  GOING PUBL MEDIA

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 fairly strong technical indicators, Armada Hflr is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

GOING PUBL MEDIA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GOING PUBL MEDIA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Armada Hflr and GOING PUBL

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

The idea behind Armada Hflr Pr and GOING PUBL MEDIA 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.