Correlation Between PHN Multi and Knight Therapeutics
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By analyzing existing cross correlation between PHN Multi Style All Cap and Knight Therapeutics, you can compare the effects of market volatilities on PHN Multi and Knight Therapeutics 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 Knight Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHN Multi and Knight Therapeutics.
Diversification Opportunities for PHN Multi and Knight Therapeutics
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PHN and Knight is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding PHN Multi Style All Cap and Knight Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knight Therapeutics 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 Knight Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knight Therapeutics has no effect on the direction of PHN Multi i.e., PHN Multi and Knight Therapeutics go up and down completely randomly.
Pair Corralation between PHN Multi and Knight Therapeutics
Assuming the 90 days trading horizon PHN Multi Style All Cap is expected to generate 0.32 times more return on investment than Knight Therapeutics. However, PHN Multi Style All Cap is 3.17 times less risky than Knight Therapeutics. It trades about 0.27 of its potential returns per unit of risk. Knight Therapeutics is currently generating about -0.1 per unit of risk. If you would invest 2,728 in PHN Multi Style All Cap on September 2, 2024 and sell it today you would earn a total of 132.00 from holding PHN Multi Style All Cap or generate 4.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
PHN Multi Style All Cap vs. Knight Therapeutics
Performance |
| Timeline |
| PHN Multi Style |
| Knight Therapeutics |
PHN Multi and Knight Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PHN Multi and Knight Therapeutics
The main advantage of trading using opposite PHN Multi and Knight Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHN Multi position performs unexpectedly, Knight Therapeutics 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 Knight Therapeutics will offset losses from the drop in Knight Therapeutics' long position.| PHN Multi vs. PHN Canadian Equity | PHN Multi vs. Dynamic Global Fixed | PHN Multi vs. Mawer Global Equity |
| Knight Therapeutics vs. Stella Jones | Knight Therapeutics vs. Richelieu Hardware | Knight Therapeutics vs. Element Fleet Management | Knight Therapeutics vs. ECN Capital 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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