Correlation Between Armada Hflr and Long An
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Long An 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 Long An 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 Long An Food, you can compare the effects of market volatilities on Armada Hflr and Long An 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 Long An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Long An.
Diversification Opportunities for Armada Hflr and Long An
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Armada and Long is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Long An Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Long An Food 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 Long An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Long An Food has no effect on the direction of Armada Hflr i.e., Armada Hflr and Long An go up and down completely randomly.
Pair Corralation between Armada Hflr and Long An
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Long An. In addition to that, Armada Hflr is 1.05 times more volatile than Long An Food. It trades about -0.08 of its total potential returns per unit of risk. Long An Food is currently generating about 0.02 per unit of volatility. If you would invest 1,745,000 in Long An Food on September 15, 2024 and sell it today you would earn a total of 15,000 from holding Long An Food or generate 0.86% 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. Long An Food
Performance |
Timeline |
Armada Hflr Pr |
Long An Food |
Armada Hflr and Long An Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Armada Hflr and Long An
The main advantage of trading using opposite Armada Hflr and Long An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Long An 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 Long An will offset losses from the drop in Long An'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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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