Correlation Between Armada Hflr and Property Lease

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

Diversification Opportunities for Armada Hflr and Property Lease

0.0

Correlation Coefficient

Armada Hflr  Property Lease

Pay attention - limited upside

The 3 months correlation between Armada and Property is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Property Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Property Lease 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 Property Lease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Property Lease has no effect on the direction of Armada Hflr i.e., Armada Hflr and Property Lease go up and down completely randomly.

Pair Corralation between Armada Hflr and Property Lease

If you would invest  0.00  in Property Lease on December 27, 2024 and sell it today you would earn a total of  0.00  from holding Property Lease or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.67%
Values	Daily Returns

Armada Hflr Pr  vs.  Property Lease

Armada Hflr Pr

Risk-Adjusted Performance

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 weak performance in the last few months, the Stock's technical indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Property Lease

Risk-Adjusted Performance

Very Weak

Over the last 90 days Property Lease has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound essential indicators, Property Lease is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Armada Hflr and Property Lease

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

The idea behind Armada Hflr Pr and Property Lease 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.