Correlation Between Armada Hflr and Mackenzie Canadian

Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Mackenzie Canadian 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 Mackenzie Canadian 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 Mackenzie Canadian All, you can compare the effects of market volatilities on Armada Hflr and Mackenzie Canadian 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 Mackenzie Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Mackenzie Canadian.

Diversification Opportunities for Armada Hflr and Mackenzie Canadian

-0.16

Correlation Coefficient

Armada Hflr  Mackenzie Canadian

Good diversification

The 3 months correlation between Armada and Mackenzie is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Mackenzie Canadian All in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mackenzie Canadian All 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 Mackenzie Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mackenzie Canadian All has no effect on the direction of Armada Hflr i.e., Armada Hflr and Mackenzie Canadian go up and down completely randomly.

Pair Corralation between Armada Hflr and Mackenzie Canadian

Considering the 90-day investment horizon Armada Hflr Pr is expected to generate 5.06 times more return on investment than Mackenzie Canadian. However, Armada Hflr is 5.06 times more volatile than Mackenzie Canadian All. It trades about 0.02 of its potential returns per unit of risk. Mackenzie Canadian All is currently generating about 0.08 per unit of risk. If you would invest  1,016  in Armada Hflr Pr on September 14, 2024 and sell it today you would earn a total of  72.00  from holding Armada Hflr Pr or generate 7.09% 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.  Mackenzie Canadian All

Armada Hflr Pr

Risk-Adjusted Performance

0 of 100

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 latest weak performance, the Stock's technical indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Mackenzie Canadian All

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mackenzie Canadian All are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Mackenzie Canadian is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Armada Hflr and Mackenzie Canadian

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

The idea behind Armada Hflr Pr and Mackenzie Canadian All 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.