Correlation Between Armada Hflr and IShares IBonds

Can any of the company-specific risk be diversified away by investing in both Armada Hflr and IShares IBonds 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 IShares IBonds 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 iShares iBonds 2028, you can compare the effects of market volatilities on Armada Hflr and IShares IBonds 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 IShares IBonds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and IShares IBonds.

Diversification Opportunities for Armada Hflr and IShares IBonds

-0.15

Correlation Coefficient

Armada Hflr  IShares IBonds

Good diversification

The 3 months correlation between Armada and IShares is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and iShares iBonds 2028 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares iBonds 2028 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 IShares IBonds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares iBonds 2028 has no effect on the direction of Armada Hflr i.e., Armada Hflr and IShares IBonds go up and down completely randomly.

Pair Corralation between Armada Hflr and IShares IBonds

Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the IShares IBonds. In addition to that, Armada Hflr is 4.26 times more volatile than iShares iBonds 2028. It trades about 0.0 of its total potential returns per unit of risk. iShares iBonds 2028 is currently generating about 0.09 per unit of volatility. If you would invest  1,996  in iShares iBonds 2028 on October 13, 2024 and sell it today you would earn a total of  337.00  from holding iShares iBonds 2028 or generate 16.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Armada Hflr Pr  vs.  iShares iBonds 2028

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 latest weak performance, the Stock's technical indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

iShares iBonds 2028

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in iShares iBonds 2028 are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong technical indicators, IShares IBonds is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Armada Hflr and IShares IBonds

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

The idea behind Armada Hflr Pr and iShares iBonds 2028 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.