Correlation Between Armada Hflr and 1875 ZUGER

Can any of the company-specific risk be diversified away by investing in both Armada Hflr and 1875 ZUGER 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 1875 ZUGER 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 1875 ZUGER KB, you can compare the effects of market volatilities on Armada Hflr and 1875 ZUGER 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 1875 ZUGER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and 1875 ZUGER.

Diversification Opportunities for Armada Hflr and 1875 ZUGER

0.0

Correlation Coefficient

Armada Hflr  1875 ZUGER

Pay attention - limited upside

The 3 months correlation between Armada and 1875 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and 1875 ZUGER KB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1875 ZUGER KB 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 1875 ZUGER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1875 ZUGER KB has no effect on the direction of Armada Hflr i.e., Armada Hflr and 1875 ZUGER go up and down completely randomly.

Pair Corralation between Armada Hflr and 1875 ZUGER

If you would invest (100.00) in 1875 ZUGER KB on September 30, 2024 and sell it today you would earn a total of  100.00  from holding 1875 ZUGER KB or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Armada Hflr Pr  vs.  1875 ZUGER KB

Armada Hflr Pr

Risk-Adjusted Performance

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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 fairly strong technical indicators, Armada Hflr is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

1875 ZUGER KB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days 1875 ZUGER KB has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong basic indicators, 1875 ZUGER 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 1875 ZUGER

The main advantage of trading using opposite Armada Hflr and 1875 ZUGER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, 1875 ZUGER 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 1875 ZUGER will offset losses from the drop in 1875 ZUGER's long position.

The idea behind Armada Hflr Pr and 1875 ZUGER KB 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.