Correlation Between Armada Hflr and OSRAM LICHT
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and OSRAM LICHT 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 OSRAM LICHT 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 OSRAM LICHT N, you can compare the effects of market volatilities on Armada Hflr and OSRAM LICHT 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 OSRAM LICHT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and OSRAM LICHT.
Diversification Opportunities for Armada Hflr and OSRAM LICHT
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Armada and OSRAM is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and OSRAM LICHT N in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OSRAM LICHT N 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 OSRAM LICHT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OSRAM LICHT N has no effect on the direction of Armada Hflr i.e., Armada Hflr and OSRAM LICHT go up and down completely randomly.
Pair Corralation between Armada Hflr and OSRAM LICHT
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the OSRAM LICHT. In addition to that, Armada Hflr is 4.71 times more volatile than OSRAM LICHT N. It trades about -0.15 of its total potential returns per unit of risk. OSRAM LICHT N is currently generating about 0.19 per unit of volatility. If you would invest 5,080 in OSRAM LICHT N on September 23, 2024 and sell it today you would earn a total of 100.00 from holding OSRAM LICHT N or generate 1.97% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 97.73% |
Values | Daily Returns |
Armada Hflr Pr vs. OSRAM LICHT N
Performance |
Timeline |
Armada Hflr Pr |
OSRAM LICHT N |
Armada Hflr and OSRAM LICHT Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Armada Hflr and OSRAM LICHT
The main advantage of trading using opposite Armada Hflr and OSRAM LICHT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, OSRAM LICHT 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 OSRAM LICHT will offset losses from the drop in OSRAM LICHT'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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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