Correlation Between PHN Multi and Baylin Technologies
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By analyzing existing cross correlation between PHN Multi Style All Cap and Baylin Technologies, you can compare the effects of market volatilities on PHN Multi and Baylin Technologies 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 Baylin Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHN Multi and Baylin Technologies.
Diversification Opportunities for PHN Multi and Baylin Technologies
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PHN and Baylin is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding PHN Multi Style All Cap and Baylin Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baylin Technologies 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 Baylin Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baylin Technologies has no effect on the direction of PHN Multi i.e., PHN Multi and Baylin Technologies go up and down completely randomly.
Pair Corralation between PHN Multi and Baylin Technologies
Assuming the 90 days trading horizon PHN Multi Style All Cap is expected to generate 0.12 times more return on investment than Baylin Technologies. However, PHN Multi Style All Cap is 8.18 times less risky than Baylin Technologies. It trades about 0.27 of its potential returns per unit of risk. Baylin Technologies is currently generating about -0.14 per unit of risk. If you would invest 2,728 in PHN Multi Style All Cap on September 2, 2024 and sell it today you would earn a total of 132.00 from holding PHN Multi Style All Cap or generate 4.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
PHN Multi Style All Cap vs. Baylin Technologies
Performance |
| Timeline |
| PHN Multi Style |
| Baylin Technologies |
PHN Multi and Baylin Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PHN Multi and Baylin Technologies
The main advantage of trading using opposite PHN Multi and Baylin Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHN Multi position performs unexpectedly, Baylin Technologies 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 Baylin Technologies will offset losses from the drop in Baylin Technologies' long position.| PHN Multi vs. PHN Canadian Equity | PHN Multi vs. Dynamic Global Fixed | PHN Multi vs. Mawer Global Equity |
| Baylin Technologies vs. Current Water Technologies | Baylin Technologies vs. Sparta Capital | Baylin Technologies vs. Fintech Select | Baylin Technologies 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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