Correlation Between PHN Multi and Medical Facilities
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By analyzing existing cross correlation between PHN Multi Style All Cap and Medical Facilities, you can compare the effects of market volatilities on PHN Multi and Medical Facilities 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 Medical Facilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHN Multi and Medical Facilities.
Diversification Opportunities for PHN Multi and Medical Facilities
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between PHN and Medical is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding PHN Multi Style All Cap and Medical Facilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medical Facilities 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 Medical Facilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medical Facilities has no effect on the direction of PHN Multi i.e., PHN Multi and Medical Facilities go up and down completely randomly.
Pair Corralation between PHN Multi and Medical Facilities
Assuming the 90 days trading horizon PHN Multi is expected to generate 1.79 times less return on investment than Medical Facilities. But when comparing it to its historical volatility, PHN Multi Style All Cap is 2.6 times less risky than Medical Facilities. It trades about 0.27 of its potential returns per unit of risk. Medical Facilities is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,442 in Medical Facilities on September 2, 2024 and sell it today you would earn a total of 128.00 from holding Medical Facilities or generate 8.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
PHN Multi Style All Cap vs. Medical Facilities
Performance |
| Timeline |
| PHN Multi Style |
| Medical Facilities |
PHN Multi and Medical Facilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PHN Multi and Medical Facilities
The main advantage of trading using opposite PHN Multi and Medical Facilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHN Multi position performs unexpectedly, Medical Facilities 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 Medical Facilities will offset losses from the drop in Medical Facilities' long position.| PHN Multi vs. PHN Canadian Equity | PHN Multi vs. Dynamic Global Fixed | PHN Multi vs. Mawer Global Equity |
| Medical Facilities vs. Extendicare | Medical Facilities vs. Sienna Senior Living | Medical Facilities vs. Rogers Sugar | Medical Facilities vs. Chemtrade Logistics Income |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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