Correlation Between Armada Hflr and Generation Income

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

Diversification Opportunities for Armada Hflr and Generation Income

-0.58

Correlation Coefficient

Armada Hflr  Generation Income

Excellent diversification

The 3 months correlation between Armada and Generation is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Generation Income Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Generation Income 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 Generation Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Generation Income has no effect on the direction of Armada Hflr i.e., Armada Hflr and Generation Income go up and down completely randomly.

Pair Corralation between Armada Hflr and Generation Income

Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Generation Income. But the stock apears to be less risky and, when comparing its historical volatility, Armada Hflr Pr is 8.49 times less risky than Generation Income. The stock trades about -0.21 of its potential returns per unit of risk. The Generation Income Properties is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  20.00  in Generation Income Properties on December 30, 2024 and sell it today you would earn a total of  10.00  from holding Generation Income Properties or generate 50.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	51.61%
Values	Daily Returns

Armada Hflr Pr  vs.  Generation Income Properties

Armada Hflr Pr

Risk-Adjusted Performance

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 weak performance in the last few months, the Stock's technical indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Generation Income

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Generation Income Properties are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Generation Income showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Armada Hflr and Generation Income

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

The idea behind Armada Hflr Pr and Generation Income Properties 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.