Correlation Between Armada Hflr and SMUCKER
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By analyzing existing cross correlation between Armada Hflr Pr and SMUCKER J M, you can compare the effects of market volatilities on Armada Hflr and SMUCKER 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 SMUCKER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and SMUCKER.
Diversification Opportunities for Armada Hflr and SMUCKER
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Armada and SMUCKER is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and SMUCKER J M in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SMUCKER J M 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 SMUCKER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SMUCKER J M has no effect on the direction of Armada Hflr i.e., Armada Hflr and SMUCKER go up and down completely randomly.
Pair Corralation between Armada Hflr and SMUCKER
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the SMUCKER. In addition to that, Armada Hflr is 1.14 times more volatile than SMUCKER J M. It trades about -0.2 of its total potential returns per unit of risk. SMUCKER J M is currently generating about -0.03 per unit of volatility. If you would invest 8,620 in SMUCKER J M on December 5, 2024 and sell it today you would lose (130.00) from holding SMUCKER J M or give up 1.51% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 59.32% |
Values | Daily Returns |
Armada Hflr Pr vs. SMUCKER J M
Performance |
Timeline |
Armada Hflr Pr |
SMUCKER J M |
Armada Hflr and SMUCKER Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Armada Hflr and SMUCKER
The main advantage of trading using opposite Armada Hflr and SMUCKER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, SMUCKER 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 SMUCKER will offset losses from the drop in SMUCKER'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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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