Correlation Between Armada Hflr and AG Anadolu
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and AG Anadolu 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 AG Anadolu 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 AG Anadolu Group, you can compare the effects of market volatilities on Armada Hflr and AG Anadolu 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 AG Anadolu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and AG Anadolu.
Diversification Opportunities for Armada Hflr and AG Anadolu
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Armada and AGHOL is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and AG Anadolu Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AG Anadolu Group 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 AG Anadolu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AG Anadolu Group has no effect on the direction of Armada Hflr i.e., Armada Hflr and AG Anadolu go up and down completely randomly.
Pair Corralation between Armada Hflr and AG Anadolu
Considering the 90-day investment horizon Armada Hflr is expected to generate 21.25 times less return on investment than AG Anadolu. But when comparing it to its historical volatility, Armada Hflr Pr is 1.86 times less risky than AG Anadolu. It trades about 0.01 of its potential returns per unit of risk. AG Anadolu Group is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 10,987 in AG Anadolu Group on September 23, 2024 and sell it today you would earn a total of 25,288 from holding AG Anadolu Group or generate 230.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Armada Hflr Pr vs. AG Anadolu Group
Performance |
Timeline |
Armada Hflr Pr |
AG Anadolu Group |
Armada Hflr and AG Anadolu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Armada Hflr and AG Anadolu
The main advantage of trading using opposite Armada Hflr and AG Anadolu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, AG Anadolu 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 AG Anadolu will offset losses from the drop in AG Anadolu'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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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