Correlation Between PHN Multi and E L
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By analyzing existing cross correlation between PHN Multi Style All Cap and E L Financial Corp, you can compare the effects of market volatilities on PHN Multi and E L 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 E L. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHN Multi and E L.
Diversification Opportunities for PHN Multi and E L
Very weak diversification
The 3 months correlation between PHN and ELF is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding PHN Multi Style All Cap and E L Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E L Financial 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 E L. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E L Financial has no effect on the direction of PHN Multi i.e., PHN Multi and E L go up and down completely randomly.
Pair Corralation between PHN Multi and E L
Assuming the 90 days trading horizon PHN Multi Style All Cap is expected to under-perform the E L. But the fund apears to be less risky and, when comparing its historical volatility, PHN Multi Style All Cap is 2.88 times less risky than E L. The fund trades about -0.22 of its potential returns per unit of risk. The E L Financial Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 143,720 in E L Financial Corp on November 29, 2024 and sell it today you would earn a total of 5,280 from holding E L Financial Corp or generate 3.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PHN Multi Style All Cap vs. E L Financial Corp
Performance |
| Timeline |
| PHN Multi Style |
| E L Financial |
PHN Multi and E L Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PHN Multi and E L
The main advantage of trading using opposite PHN Multi and E L positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHN Multi position performs unexpectedly, E L 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 E L will offset losses from the drop in E L's long position.| PHN Multi vs. Fidelity Tactical High | PHN Multi vs. Fidelity ClearPath 2045 | PHN Multi vs. Bloom Select Income | PHN Multi vs. Mackenzie Ivy European |
| E L vs. Algoma Central | E L vs. Winpak | E L vs. Fairfax Financial Holdings | E L vs. Economic Investment Trust |
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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