Correlation Between PHN Multi and Bloom Select
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By analyzing existing cross correlation between PHN Multi Style All Cap and Bloom Select Income, you can compare the effects of market volatilities on PHN Multi and Bloom Select 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 Multi with a short position of Bloom Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHN Multi and Bloom Select.
Diversification Opportunities for PHN Multi and Bloom Select
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PHN and Bloom is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding PHN Multi Style All Cap and Bloom Select Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloom Select Income and PHN Multi 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 Multi Style All Cap are associated (or correlated) with Bloom Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bloom Select Income has no effect on the direction of PHN Multi i.e., PHN Multi and Bloom Select go up and down completely randomly.
Pair Corralation between PHN Multi and Bloom Select
Assuming the 90 days trading horizon PHN Multi Style All Cap is expected to generate 0.42 times more return on investment than Bloom Select. However, PHN Multi Style All Cap is 2.38 times less risky than Bloom Select. It trades about 0.23 of its potential returns per unit of risk. Bloom Select Income is currently generating about -0.11 per unit of risk. If you would invest 2,754 in PHN Multi Style All Cap on August 31, 2024 and sell it today you would earn a total of 129.00 from holding PHN Multi Style All Cap or generate 4.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 77.27% |
| Values | Daily Returns |
PHN Multi Style All Cap vs. Bloom Select Income
Performance |
| Timeline |
| PHN Multi Style |
| Bloom Select Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
PHN Multi and Bloom Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PHN Multi and Bloom Select
The main advantage of trading using opposite PHN Multi and Bloom Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHN Multi position performs unexpectedly, Bloom Select 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 Bloom Select will offset losses from the drop in Bloom Select's long position.| PHN Multi vs. BMO Aggregate Bond | PHN Multi vs. iShares Canadian HYBrid | PHN Multi vs. Brompton European Dividend | PHN Multi vs. Solar Alliance Energy |
| Bloom Select vs. Tech Leaders Income | Bloom Select vs. Brompton Global Dividend | Bloom Select vs. Forstrong Global Income | Bloom Select 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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