Correlation Between PHN Canadian and Tangerine Equity
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By analyzing existing cross correlation between PHN Canadian Equity and Tangerine Equity Growth, you can compare the effects of market volatilities on PHN Canadian and Tangerine Equity 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 Tangerine Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHN Canadian and Tangerine Equity.
Diversification Opportunities for PHN Canadian and Tangerine Equity
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between PHN and Tangerine is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding PHN Canadian Equity and Tangerine Equity Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tangerine Equity Growth 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 Tangerine Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tangerine Equity Growth has no effect on the direction of PHN Canadian i.e., PHN Canadian and Tangerine Equity go up and down completely randomly.
Pair Corralation between PHN Canadian and Tangerine Equity
Assuming the 90 days trading horizon PHN Canadian is expected to generate 1.51 times less return on investment than Tangerine Equity. In addition to that, PHN Canadian is 1.12 times more volatile than Tangerine Equity Growth. It trades about 0.07 of its total potential returns per unit of risk. Tangerine Equity Growth is currently generating about 0.12 per unit of volatility. If you would invest 1,020 in Tangerine Equity Growth on August 30, 2024 and sell it today you would earn a total of 427.00 from holding Tangerine Equity Growth or generate 41.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
PHN Canadian Equity vs. Tangerine Equity Growth
Performance |
| Timeline |
| PHN Canadian Equity |
| Tangerine Equity Growth |
PHN Canadian and Tangerine Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PHN Canadian and Tangerine Equity
The main advantage of trading using opposite PHN Canadian and Tangerine Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHN Canadian position performs unexpectedly, Tangerine Equity 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 Tangerine Equity will offset losses from the drop in Tangerine Equity's long position.| PHN Canadian vs. Mawer Canadien actions | PHN Canadian vs. RBC Canadian Equity | PHN Canadian vs. BMO Aggregate Bond | PHN Canadian vs. iShares Canadian HYBrid |
| Tangerine Equity vs. RBC Select Balanced | Tangerine Equity vs. RBC Portefeuille de | Tangerine Equity vs. TD Comfort Balanced | Tangerine Equity vs. RBC 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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