Correlation Between Armada Hoffler and Thrivent High

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

By analyzing existing cross correlation between Armada Hoffler Properties and Thrivent High Yield, you can compare the effects of market volatilities on Armada Hoffler and Thrivent High 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 Hoffler with a short position of Thrivent High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hoffler and Thrivent High.

Diversification Opportunities for Armada Hoffler and Thrivent High

0.08

Correlation Coefficient

Armada Hoffler  Thrivent High

Significant diversification

The 3 months correlation between Armada and Thrivent is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hoffler Properties and Thrivent High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent High Yield and Armada Hoffler 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 Hoffler Properties are associated (or correlated) with Thrivent High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent High Yield has no effect on the direction of Armada Hoffler i.e., Armada Hoffler and Thrivent High go up and down completely randomly.

Pair Corralation between Armada Hoffler and Thrivent High

Assuming the 90 days trading horizon Armada Hoffler Properties is expected to generate 6.96 times more return on investment than Thrivent High. However, Armada Hoffler is 6.96 times more volatile than Thrivent High Yield. It trades about 0.08 of its potential returns per unit of risk. Thrivent High Yield is currently generating about 0.15 per unit of risk. If you would invest  2,237  in Armada Hoffler Properties on September 12, 2024 and sell it today you would earn a total of  106.00  from holding Armada Hoffler Properties or generate 4.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Armada Hoffler Properties  vs.  Thrivent High Yield

Armada Hoffler Properties

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Armada Hoffler Properties are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong technical indicators, Armada Hoffler is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Thrivent High Yield

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Thrivent High Yield are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Thrivent High 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 Hoffler and Thrivent High

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

The idea behind Armada Hoffler Properties and Thrivent High Yield 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..