Correlation Between PHN Multi and US Financial
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By analyzing existing cross correlation between PHN Multi Style All Cap and US Financial 15, you can compare the effects of market volatilities on PHN Multi and US Financial 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 US Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHN Multi and US Financial.
Diversification Opportunities for PHN Multi and US Financial
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PHN and FTU is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding PHN Multi Style All Cap and US Financial 15 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Financial 15 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 US Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Financial 15 has no effect on the direction of PHN Multi i.e., PHN Multi and US Financial go up and down completely randomly.
Pair Corralation between PHN Multi and US Financial
Assuming the 90 days trading horizon PHN Multi is expected to generate 3.64 times less return on investment than US Financial. But when comparing it to its historical volatility, PHN Multi Style All Cap is 8.28 times less risky than US Financial. It trades about 0.1 of its potential returns per unit of risk. US Financial 15 is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 44.00 in US Financial 15 on September 2, 2024 and sell it today you would earn a total of 25.00 from holding US Financial 15 or generate 56.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
PHN Multi Style All Cap vs. US Financial 15
Performance |
| Timeline |
| PHN Multi Style |
| US Financial 15 |
PHN Multi and US Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PHN Multi and US Financial
The main advantage of trading using opposite PHN Multi and US Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHN Multi position performs unexpectedly, US Financial 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 US Financial will offset losses from the drop in US Financial's long position.| PHN Multi vs. PHN Canadian Equity | PHN Multi vs. Dynamic Global Fixed | PHN Multi vs. Mawer Global Equity |
| US Financial vs. Canadian Life Companies | US Financial vs. Prime Dividend Corp | US Financial vs. Commerce Split Corp | US Financial vs. TDb Split Corp |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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