Correlation Between Artis REIT and Armada Hflr

Can any of the company-specific risk be diversified away by investing in both Artis REIT and Armada Hflr 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 Artis REIT and Armada Hflr into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Artis REIT and Armada Hflr Pr, you can compare the effects of market volatilities on Artis REIT and Armada Hflr 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 Artis REIT with a short position of Armada Hflr. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artis REIT and Armada Hflr.

Diversification Opportunities for Artis REIT and Armada Hflr

-0.27

Correlation Coefficient

Artis REIT  Armada Hflr

Very good diversification

The 3 months correlation between Artis and Armada is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Artis REIT and Armada Hflr Pr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Armada Hflr Pr and Artis REIT 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 Artis REIT are associated (or correlated) with Armada Hflr. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Armada Hflr Pr has no effect on the direction of Artis REIT i.e., Artis REIT and Armada Hflr go up and down completely randomly.

Pair Corralation between Artis REIT and Armada Hflr

Assuming the 90 days horizon Artis REIT is expected to generate 0.69 times more return on investment than Armada Hflr. However, Artis REIT is 1.44 times less risky than Armada Hflr. It trades about 0.14 of its potential returns per unit of risk. Armada Hflr Pr is currently generating about -0.2 per unit of risk. If you would invest  484.00  in Artis REIT on December 19, 2024 and sell it today you would earn a total of  53.00  from holding Artis REIT or generate 10.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	91.67%
Values	Daily Returns

Artis REIT  vs.  Armada Hflr Pr

Artis REIT

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Artis REIT are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Artis REIT may actually be approaching a critical reversion point that can send shares even higher in April 2025.

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.

Pair Trading with Artis REIT and Armada Hflr

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

The idea behind Artis REIT and Armada Hflr Pr 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.