Correlation Between Armada Hflr and Mainstay 13030

Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Mainstay 13030 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 Mainstay 13030 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 Mainstay 13030 International, you can compare the effects of market volatilities on Armada Hflr and Mainstay 13030 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 Mainstay 13030. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Mainstay 13030.

Diversification Opportunities for Armada Hflr and Mainstay 13030

-0.02

Correlation Coefficient

Armada Hflr  Mainstay 13030

Good diversification

The 3 months correlation between Armada and Mainstay is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Mainstay 13030 International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay 13030 Inter 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 Mainstay 13030. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay 13030 Inter has no effect on the direction of Armada Hflr i.e., Armada Hflr and Mainstay 13030 go up and down completely randomly.

Pair Corralation between Armada Hflr and Mainstay 13030

Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Mainstay 13030. In addition to that, Armada Hflr is 1.65 times more volatile than Mainstay 13030 International. It trades about -0.09 of its total potential returns per unit of risk. Mainstay 13030 International is currently generating about 0.24 per unit of volatility. If you would invest  772.00  in Mainstay 13030 International on September 17, 2024 and sell it today you would earn a total of  16.00  from holding Mainstay 13030 International or generate 2.07% 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.  Mainstay 13030 International

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.

Mainstay 13030 Inter

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mainstay 13030 International has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Mainstay 13030 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Armada Hflr and Mainstay 13030

The main advantage of trading using opposite Armada Hflr and Mainstay 13030 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Mainstay 13030 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 Mainstay 13030 will offset losses from the drop in Mainstay 13030's long position.

The idea behind Armada Hflr Pr and Mainstay 13030 International 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.