Correlation Between PHN Multi and North American
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By analyzing existing cross correlation between PHN Multi Style All Cap and North American Financial, you can compare the effects of market volatilities on PHN Multi and North American 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 North American. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHN Multi and North American.
Diversification Opportunities for PHN Multi and North American
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between PHN and North is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding PHN Multi Style All Cap and North American Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North American 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 North American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North American Financial has no effect on the direction of PHN Multi i.e., PHN Multi and North American go up and down completely randomly.
Pair Corralation between PHN Multi and North American
Assuming the 90 days trading horizon PHN Multi is expected to generate 2.42 times less return on investment than North American. But when comparing it to its historical volatility, PHN Multi Style All Cap is 2.02 times less risky than North American. It trades about 0.27 of its potential returns per unit of risk. North American Financial is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 668.00 in North American Financial on September 2, 2024 and sell it today you would earn a total of 84.00 from holding North American Financial or generate 12.57% 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. North American Financial
Performance |
| Timeline |
| PHN Multi Style |
| North American Financial |
PHN Multi and North American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PHN Multi and North American
The main advantage of trading using opposite PHN Multi and North American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHN Multi position performs unexpectedly, North American 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 North American will offset losses from the drop in North American's long position.| PHN Multi vs. PHN Canadian Equity | PHN Multi vs. Dynamic Global Fixed | PHN Multi vs. Mawer Global Equity |
| North American vs. Dividend Growth Split | North American vs. Dividend 15 Split | North American vs. Financial 15 Split | North American vs. Dividend 15 Split |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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