Correlation Between PHN Multi and Cymbria
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By analyzing existing cross correlation between PHN Multi Style All Cap and Cymbria, you can compare the effects of market volatilities on PHN Multi and Cymbria 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 Cymbria. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHN Multi and Cymbria.
Diversification Opportunities for PHN Multi and Cymbria
Very poor diversification
The 3 months correlation between PHN and Cymbria is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding PHN Multi Style All Cap and Cymbria in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cymbria 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 Cymbria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cymbria has no effect on the direction of PHN Multi i.e., PHN Multi and Cymbria go up and down completely randomly.
Pair Corralation between PHN Multi and Cymbria
Assuming the 90 days trading horizon PHN Multi Style All Cap is expected to generate 0.84 times more return on investment than Cymbria. However, PHN Multi Style All Cap is 1.19 times less risky than Cymbria. It trades about 0.13 of its potential returns per unit of risk. Cymbria is currently generating about 0.07 per unit of risk. If you would invest 2,529 in PHN Multi Style All Cap on September 3, 2024 and sell it today you would earn a total of 331.00 from holding PHN Multi Style All Cap or generate 13.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
PHN Multi Style All Cap vs. Cymbria
Performance |
| Timeline |
| PHN Multi Style |
| Cymbria |
PHN Multi and Cymbria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PHN Multi and Cymbria
The main advantage of trading using opposite PHN Multi and Cymbria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHN Multi position performs unexpectedly, Cymbria 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 Cymbria will offset losses from the drop in Cymbria's long position.| PHN Multi vs. PHN Canadian Equity | PHN Multi vs. Fidelity Tactical High | PHN Multi vs. Fidelity ClearPath 2045 | PHN Multi vs. Bloom Select Income |
| Cymbria vs. Clairvest Group | Cymbria vs. Uniteds Limited | Cymbria vs. E L Financial Corp | Cymbria vs. Senvest Capital |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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