Correlation Between PHN Multi and European Residential
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By analyzing existing cross correlation between PHN Multi Style All Cap and European Residential Real, you can compare the effects of market volatilities on PHN Multi and European Residential 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 European Residential. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHN Multi and European Residential.
Diversification Opportunities for PHN Multi and European Residential
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PHN and European is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding PHN Multi Style All Cap and European Residential Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on European Residential Real 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 European Residential. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of European Residential Real has no effect on the direction of PHN Multi i.e., PHN Multi and European Residential go up and down completely randomly.
Pair Corralation between PHN Multi and European Residential
Assuming the 90 days trading horizon PHN Multi Style All Cap is expected to generate 0.42 times more return on investment than European Residential. However, PHN Multi Style All Cap is 2.41 times less risky than European Residential. It trades about 0.12 of its potential returns per unit of risk. European Residential Real is currently generating about 0.04 per unit of risk. If you would invest 1,972 in PHN Multi Style All Cap on August 26, 2024 and sell it today you would earn a total of 836.00 from holding PHN Multi Style All Cap or generate 42.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.75% |
| Values | Daily Returns |
PHN Multi Style All Cap vs. European Residential Real
Performance |
| Timeline |
| PHN Multi Style |
| European Residential Real |
PHN Multi and European Residential Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PHN Multi and European Residential
The main advantage of trading using opposite PHN Multi and European Residential positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHN Multi position performs unexpectedly, European Residential 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 European Residential will offset losses from the drop in European Residential's long position.The idea behind PHN Multi Style All Cap and European Residential Real pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| European Residential vs. BSR Real Estate | European Residential vs. Minto Apartment Real | European Residential vs. Nexus Real Estate | European Residential vs. Morguard North American |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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