Correlation Between PHN Canadian and Mawer Canadien
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By analyzing existing cross correlation between PHN Canadian Equity and Mawer Canadien actions, you can compare the effects of market volatilities on PHN Canadian and Mawer Canadien 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 PHN Canadian with a short position of Mawer Canadien. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHN Canadian and Mawer Canadien.
Diversification Opportunities for PHN Canadian and Mawer Canadien
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between PHN and Mawer is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding PHN Canadian Equity and Mawer Canadien actions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mawer Canadien actions and PHN Canadian 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 PHN Canadian Equity are associated (or correlated) with Mawer Canadien. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mawer Canadien actions has no effect on the direction of PHN Canadian i.e., PHN Canadian and Mawer Canadien go up and down completely randomly.
Pair Corralation between PHN Canadian and Mawer Canadien
Assuming the 90 days trading horizon PHN Canadian Equity is expected to under-perform the Mawer Canadien. But the fund apears to be less risky and, when comparing its historical volatility, PHN Canadian Equity is 1.07 times less risky than Mawer Canadien. The fund trades about -0.07 of its potential returns per unit of risk. The Mawer Canadien actions is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 10,235 in Mawer Canadien actions on November 27, 2024 and sell it today you would lose (207.00) from holding Mawer Canadien actions or give up 2.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
PHN Canadian Equity vs. Mawer Canadien actions
Performance |
| Timeline |
| PHN Canadian Equity |
| Mawer Canadien actions |
PHN Canadian and Mawer Canadien Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PHN Canadian and Mawer Canadien
The main advantage of trading using opposite PHN Canadian and Mawer Canadien positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHN Canadian position performs unexpectedly, Mawer Canadien 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 Mawer Canadien will offset losses from the drop in Mawer Canadien's long position.| PHN Canadian vs. Healthcare Special Opportunities | PHN Canadian vs. Global Healthcare Income | PHN Canadian vs. CI Global Health |
| Mawer Canadien vs. CI Global Resource | Mawer Canadien vs. CI Global Unconstrained | Mawer Canadien vs. Renaissance Global Science | Mawer Canadien vs. Manulife Global Equity |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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