Correlation Between Armada Hflr and Leverage Shares
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By analyzing existing cross correlation between Armada Hflr Pr and Leverage Shares 3x, you can compare the effects of market volatilities on Armada Hflr and Leverage Shares 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 Leverage Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Leverage Shares.
Diversification Opportunities for Armada Hflr and Leverage Shares
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Armada and Leverage is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Leverage Shares 3x in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leverage Shares 3x 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 Leverage Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leverage Shares 3x has no effect on the direction of Armada Hflr i.e., Armada Hflr and Leverage Shares go up and down completely randomly.
Pair Corralation between Armada Hflr and Leverage Shares
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Leverage Shares. But the stock apears to be less risky and, when comparing its historical volatility, Armada Hflr Pr is 2.93 times less risky than Leverage Shares. The stock trades about -0.07 of its potential returns per unit of risk. The Leverage Shares 3x is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 413.00 in Leverage Shares 3x on September 26, 2024 and sell it today you would earn a total of 101.00 from holding Leverage Shares 3x or generate 24.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
Armada Hflr Pr vs. Leverage Shares 3x
Performance |
Timeline |
Armada Hflr Pr |
Leverage Shares 3x |
Armada Hflr and Leverage Shares Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Armada Hflr and Leverage Shares
The main advantage of trading using opposite Armada Hflr and Leverage Shares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Leverage Shares 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 Leverage Shares will offset losses from the drop in Leverage Shares' long position.Armada Hflr vs. Realty Income | Armada Hflr vs. Park Hotels Resorts | Armada Hflr vs. Power REIT | Armada Hflr vs. Urban Edge Properties |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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