Correlation Between Armada Hflr and SiamEast Solutions
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and SiamEast Solutions 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 SiamEast Solutions 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 SiamEast Solutions Public, you can compare the effects of market volatilities on Armada Hflr and SiamEast Solutions 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 SiamEast Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and SiamEast Solutions.
Diversification Opportunities for Armada Hflr and SiamEast Solutions
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Armada and SiamEast is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and SiamEast Solutions Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SiamEast Solutions Public 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 SiamEast Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SiamEast Solutions Public has no effect on the direction of Armada Hflr i.e., Armada Hflr and SiamEast Solutions go up and down completely randomly.
Pair Corralation between Armada Hflr and SiamEast Solutions
Considering the 90-day investment horizon Armada Hflr Pr is expected to generate 0.66 times more return on investment than SiamEast Solutions. However, Armada Hflr Pr is 1.5 times less risky than SiamEast Solutions. It trades about -0.19 of its potential returns per unit of risk. SiamEast Solutions Public is currently generating about -0.2 per unit of risk. If you would invest 1,078 in Armada Hflr Pr on December 4, 2024 and sell it today you would lose (167.00) from holding Armada Hflr Pr or give up 15.49% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Armada Hflr Pr vs. SiamEast Solutions Public
Performance |
Timeline |
Armada Hflr Pr |
SiamEast Solutions Public |
Armada Hflr and SiamEast Solutions Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Armada Hflr and SiamEast Solutions
The main advantage of trading using opposite Armada Hflr and SiamEast Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, SiamEast Solutions 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 SiamEast Solutions will offset losses from the drop in SiamEast Solutions' 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 |
SiamEast Solutions vs. Sea Oil Public | SiamEast Solutions vs. SGF Capital Public | SiamEast Solutions vs. Project Planning Service | SiamEast Solutions vs. Panjawattana Plastic Public |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |