Correlation Between Armada Hflr and Singha Estate

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

Diversification Opportunities for Armada Hflr and Singha Estate

-0.17

Correlation Coefficient

Armada Hflr  Singha Estate

Good diversification

The 3 months correlation between Armada and Singha is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Singha Estate Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singha Estate Public 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 Singha Estate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singha Estate Public has no effect on the direction of Armada Hflr i.e., Armada Hflr and Singha Estate go up and down completely randomly.

Pair Corralation between Armada Hflr and Singha Estate

Considering the 90-day investment horizon Armada Hflr is expected to generate 163.49 times less return on investment than Singha Estate. But when comparing it to its historical volatility, Armada Hflr Pr is 28.71 times less risky than Singha Estate. It trades about 0.01 of its potential returns per unit of risk. Singha Estate Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  183.00  in Singha Estate Public on September 25, 2024 and sell it today you would lose (92.00) from holding Singha Estate Public or give up 50.27% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.78%
Values	Daily Returns

Armada Hflr Pr  vs.  Singha Estate Public

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.

Singha Estate Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Singha Estate Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's fundamental drivers remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Armada Hflr and Singha Estate

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

The idea behind Armada Hflr Pr and Singha Estate Public 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.