Correlation Between PHN Multi and Income Financial
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By analyzing existing cross correlation between PHN Multi Style All Cap and Income Financial Trust, you can compare the effects of market volatilities on PHN Multi and Income 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 Income Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHN Multi and Income Financial.
Diversification Opportunities for PHN Multi and Income Financial
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between PHN and Income is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding PHN Multi Style All Cap and Income Financial Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Income Financial Trust 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 Income Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Income Financial Trust has no effect on the direction of PHN Multi i.e., PHN Multi and Income Financial go up and down completely randomly.
Pair Corralation between PHN Multi and Income Financial
Assuming the 90 days trading horizon PHN Multi is expected to generate 1.52 times less return on investment than Income Financial. But when comparing it to its historical volatility, PHN Multi Style All Cap is 1.23 times less risky than Income Financial. It trades about 0.27 of its potential returns per unit of risk. Income Financial Trust is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 834.00 in Income Financial Trust on September 2, 2024 and sell it today you would earn a total of 65.00 from holding Income Financial Trust or generate 7.79% 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. Income Financial Trust
Performance |
| Timeline |
| PHN Multi Style |
| Income Financial Trust |
PHN Multi and Income Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PHN Multi and Income Financial
The main advantage of trading using opposite PHN Multi and Income Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHN Multi position performs unexpectedly, Income 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 Income Financial will offset losses from the drop in Income Financial's long position.| PHN Multi vs. PHN Canadian Equity | PHN Multi vs. Dynamic Global Fixed | PHN Multi vs. Mawer Global Equity |
| Income Financial vs. Dividend Select 15 | Income Financial vs. Global Dividend Growth | Income Financial vs. Brompton Split Banc | Income Financial vs. Real Estate E Commerce |
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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