Correlation Between Armada Hflr and HALSTEAD JAMES
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and HALSTEAD JAMES 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 HALSTEAD JAMES 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 HALSTEAD JAMES LS 05, you can compare the effects of market volatilities on Armada Hflr and HALSTEAD JAMES 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 HALSTEAD JAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and HALSTEAD JAMES.
Diversification Opportunities for Armada Hflr and HALSTEAD JAMES
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Armada and HALSTEAD is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and HALSTEAD JAMES LS 05 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HALSTEAD JAMES LS 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 HALSTEAD JAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HALSTEAD JAMES LS has no effect on the direction of Armada Hflr i.e., Armada Hflr and HALSTEAD JAMES go up and down completely randomly.
Pair Corralation between Armada Hflr and HALSTEAD JAMES
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the HALSTEAD JAMES. But the stock apears to be less risky and, when comparing its historical volatility, Armada Hflr Pr is 1.47 times less risky than HALSTEAD JAMES. The stock trades about -0.02 of its potential returns per unit of risk. The HALSTEAD JAMES LS 05 is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 212.00 in HALSTEAD JAMES LS 05 on December 5, 2024 and sell it today you would lose (26.00) from holding HALSTEAD JAMES LS 05 or give up 12.26% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 98.4% |
Values | Daily Returns |
Armada Hflr Pr vs. HALSTEAD JAMES LS 05
Performance |
Timeline |
Armada Hflr Pr |
HALSTEAD JAMES LS |
Armada Hflr and HALSTEAD JAMES Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Armada Hflr and HALSTEAD JAMES
The main advantage of trading using opposite Armada Hflr and HALSTEAD JAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, HALSTEAD JAMES 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 HALSTEAD JAMES will offset losses from the drop in HALSTEAD JAMES'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 |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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