Correlation Between Armada Hflr and Lanka Milk
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By analyzing existing cross correlation between Armada Hflr Pr and Lanka Milk Foods, you can compare the effects of market volatilities on Armada Hflr and Lanka Milk 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 Lanka Milk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Lanka Milk.
Diversification Opportunities for Armada Hflr and Lanka Milk
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Armada and Lanka is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Lanka Milk Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lanka Milk Foods 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 Lanka Milk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lanka Milk Foods has no effect on the direction of Armada Hflr i.e., Armada Hflr and Lanka Milk go up and down completely randomly.
Pair Corralation between Armada Hflr and Lanka Milk
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Lanka Milk. But the stock apears to be less risky and, when comparing its historical volatility, Armada Hflr Pr is 1.15 times less risky than Lanka Milk. The stock trades about -0.21 of its potential returns per unit of risk. The Lanka Milk Foods is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 4,800 in Lanka Milk Foods on December 29, 2024 and sell it today you would lose (530.00) from holding Lanka Milk Foods or give up 11.04% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.08% |
Values | Daily Returns |
Armada Hflr Pr vs. Lanka Milk Foods
Performance |
Timeline |
Armada Hflr Pr |
Lanka Milk Foods |
Armada Hflr and Lanka Milk Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Armada Hflr and Lanka Milk
The main advantage of trading using opposite Armada Hflr and Lanka Milk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Lanka Milk 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 Lanka Milk will offset losses from the drop in Lanka Milk'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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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