Correlation Between PHN Canadian and TD Comfort
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By analyzing existing cross correlation between PHN Canadian Equity and TD Comfort Aggressive, you can compare the effects of market volatilities on PHN Canadian and TD Comfort 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 TD Comfort. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHN Canadian and TD Comfort.
Diversification Opportunities for PHN Canadian and TD Comfort
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between PHN and 0P0001FAU5 is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding PHN Canadian Equity and TD Comfort Aggressive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TD Comfort Aggressive 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 TD Comfort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TD Comfort Aggressive has no effect on the direction of PHN Canadian i.e., PHN Canadian and TD Comfort go up and down completely randomly.
Pair Corralation between PHN Canadian and TD Comfort
Assuming the 90 days trading horizon PHN Canadian Equity is expected to generate 1.06 times more return on investment than TD Comfort. However, PHN Canadian is 1.06 times more volatile than TD Comfort Aggressive. It trades about 0.26 of its potential returns per unit of risk. TD Comfort Aggressive is currently generating about 0.27 per unit of risk. If you would invest 2,237 in PHN Canadian Equity on September 15, 2024 and sell it today you would earn a total of 50.00 from holding PHN Canadian Equity or generate 2.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
PHN Canadian Equity vs. TD Comfort Aggressive
Performance |
| Timeline |
| PHN Canadian Equity |
| TD Comfort Aggressive |
PHN Canadian and TD Comfort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PHN Canadian and TD Comfort
The main advantage of trading using opposite PHN Canadian and TD Comfort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHN Canadian position performs unexpectedly, TD Comfort 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 TD Comfort will offset losses from the drop in TD Comfort's long position.| PHN Canadian vs. RBC Canadian Equity | PHN Canadian vs. BMO Aggregate Bond | PHN Canadian vs. iShares Canadian HYBrid | PHN Canadian vs. Brompton European Dividend |
| TD Comfort vs. Edgepoint Global Portfolio | TD Comfort vs. RBC Global Equity | TD Comfort vs. Invesco Global Companies |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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