Correlation Between Armada Hflr and Great West
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Great West 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 Great West 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 Great West Sp Mid, you can compare the effects of market volatilities on Armada Hflr and Great West 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 Great West. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Great West.
Diversification Opportunities for Armada Hflr and Great West
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Armada and Great is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Great West Sp Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great West Sp 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 Great West. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great West Sp has no effect on the direction of Armada Hflr i.e., Armada Hflr and Great West go up and down completely randomly.
Pair Corralation between Armada Hflr and Great West
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Great West. But the stock apears to be less risky and, when comparing its historical volatility, Armada Hflr Pr is 1.26 times less risky than Great West. The stock trades about -0.04 of its potential returns per unit of risk. The Great West Sp Mid is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 986.00 in Great West Sp Mid on September 17, 2024 and sell it today you would earn a total of 20.00 from holding Great West Sp Mid or generate 2.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.24% |
Values | Daily Returns |
Armada Hflr Pr vs. Great West Sp Mid
Performance |
Timeline |
Armada Hflr Pr |
Great West Sp |
Armada Hflr and Great West Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Armada Hflr and Great West
The main advantage of trading using opposite Armada Hflr and Great West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Great West 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 Great West will offset losses from the drop in Great West's long position.Armada Hflr vs. Boston Properties | Armada Hflr vs. Alexandria Real Estate | Armada Hflr vs. Vornado Realty Trust | Armada Hflr vs. Highwoods Properties |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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