Correlation Between Mawer Canadien and PHN Canadian
Specify exactly 2 symbols:
By analyzing existing cross correlation between Mawer Canadien actions and PHN Canadian Equity, you can compare the effects of market volatilities on Mawer Canadien and PHN 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 Mawer Canadien with a short position of PHN Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mawer Canadien and PHN Canadian.
Diversification Opportunities for Mawer Canadien and PHN Canadian
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mawer and PHN is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Mawer Canadien actions and PHN Canadian Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHN Canadian Equity and Mawer Canadien 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 Mawer Canadien actions are associated (or correlated) with PHN Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHN Canadian Equity has no effect on the direction of Mawer Canadien i.e., Mawer Canadien and PHN Canadian go up and down completely randomly.
Pair Corralation between Mawer Canadien and PHN Canadian
Assuming the 90 days trading horizon Mawer Canadien is expected to generate 1.45 times less return on investment than PHN Canadian. But when comparing it to its historical volatility, Mawer Canadien actions is 1.04 times less risky than PHN Canadian. It trades about 0.22 of its potential returns per unit of risk. PHN Canadian Equity is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 2,187 in PHN Canadian Equity on August 30, 2024 and sell it today you would earn a total of 82.00 from holding PHN Canadian Equity or generate 3.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Mawer Canadien actions vs. PHN Canadian Equity
Performance |
| Timeline |
| Mawer Canadien actions |
| PHN Canadian Equity |
Mawer Canadien and PHN Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mawer Canadien and PHN Canadian
The main advantage of trading using opposite Mawer Canadien and PHN Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mawer Canadien position performs unexpectedly, PHN 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 PHN Canadian will offset losses from the drop in PHN Canadian's long position.| Mawer Canadien vs. RBC Canadian Equity | Mawer Canadien vs. PHN Canadian Equity | Mawer Canadien vs. BMO Aggregate Bond | Mawer Canadien vs. iShares Canadian HYBrid |
| PHN Canadian vs. Mawer Canadien actions | PHN Canadian vs. RBC Canadian Equity | PHN Canadian vs. BMO Aggregate Bond | PHN Canadian vs. iShares Canadian HYBrid |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |