Correlation Between Armada Hflr and Haleon PLC
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Haleon PLC 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 Haleon PLC 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 Haleon PLC, you can compare the effects of market volatilities on Armada Hflr and Haleon PLC 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 Haleon PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Haleon PLC.
Diversification Opportunities for Armada Hflr and Haleon PLC
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Armada and Haleon is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Haleon PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haleon PLC 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 Haleon PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haleon PLC has no effect on the direction of Armada Hflr i.e., Armada Hflr and Haleon PLC go up and down completely randomly.
Pair Corralation between Armada Hflr and Haleon PLC
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Haleon PLC. But the stock apears to be less risky and, when comparing its historical volatility, Armada Hflr Pr is 1.18 times less risky than Haleon PLC. The stock trades about 0.0 of its potential returns per unit of risk. The Haleon PLC is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 730.00 in Haleon PLC on September 27, 2024 and sell it today you would earn a total of 180.00 from holding Haleon PLC or generate 24.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.26% |
Values | Daily Returns |
Armada Hflr Pr vs. Haleon PLC
Performance |
Timeline |
Armada Hflr Pr |
Haleon PLC |
Armada Hflr and Haleon PLC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Armada Hflr and Haleon PLC
The main advantage of trading using opposite Armada Hflr and Haleon PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Haleon PLC 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 Haleon PLC will offset losses from the drop in Haleon PLC's long position.Armada Hflr vs. Realty Income | Armada Hflr vs. Park Hotels Resorts | Armada Hflr vs. Power REIT | Armada Hflr vs. Urban Edge Properties |
Haleon PLC vs. Merck KGaA | Haleon PLC vs. LIVZON PHARMAC GRP | Haleon PLC vs. SIMCERE PHARMAC GRP | Haleon PLC vs. CanSino Biologics |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |