Correlation Between Armada Hflr and Guardian Canadian
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Guardian Canadian 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 Guardian Canadian 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 Guardian Canadian Bond, you can compare the effects of market volatilities on Armada Hflr and Guardian Canadian 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 Guardian Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Guardian Canadian.
Diversification Opportunities for Armada Hflr and Guardian Canadian
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Armada and Guardian is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Guardian Canadian Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardian Canadian Bond 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 Guardian Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guardian Canadian Bond has no effect on the direction of Armada Hflr i.e., Armada Hflr and Guardian Canadian go up and down completely randomly.
Pair Corralation between Armada Hflr and Guardian Canadian
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Guardian Canadian. In addition to that, Armada Hflr is 4.0 times more volatile than Guardian Canadian Bond. It trades about -0.08 of its total potential returns per unit of risk. Guardian Canadian Bond is currently generating about 0.01 per unit of volatility. If you would invest 1,854 in Guardian Canadian Bond on September 15, 2024 and sell it today you would earn a total of 3.00 from holding Guardian Canadian Bond or generate 0.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Armada Hflr Pr vs. Guardian Canadian Bond
Performance |
Timeline |
Armada Hflr Pr |
Guardian Canadian Bond |
Armada Hflr and Guardian Canadian Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Armada Hflr and Guardian Canadian
The main advantage of trading using opposite Armada Hflr and Guardian Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Guardian Canadian 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 Guardian Canadian will offset losses from the drop in Guardian Canadian'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 |
Guardian Canadian vs. Guardian Directed Equity | Guardian Canadian vs. Guardian Canadian Focused | Guardian Canadian vs. Guardian Canadian Sector | Guardian Canadian vs. Guardian Ultra Short Canadian |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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