Correlation Between PHN Multi and Maple Leaf
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By analyzing existing cross correlation between PHN Multi Style All Cap and Maple Leaf Foods, you can compare the effects of market volatilities on PHN Multi and Maple Leaf 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 Maple Leaf. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHN Multi and Maple Leaf.
Diversification Opportunities for PHN Multi and Maple Leaf
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PHN and Maple is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding PHN Multi Style All Cap and Maple Leaf Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maple Leaf Foods 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 Maple Leaf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maple Leaf Foods has no effect on the direction of PHN Multi i.e., PHN Multi and Maple Leaf go up and down completely randomly.
Pair Corralation between PHN Multi and Maple Leaf
Assuming the 90 days trading horizon PHN Multi is expected to generate 1.73 times less return on investment than Maple Leaf. But when comparing it to its historical volatility, PHN Multi Style All Cap is 2.22 times less risky than Maple Leaf. It trades about 0.24 of its potential returns per unit of risk. Maple Leaf Foods is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,135 in Maple Leaf Foods on August 31, 2024 and sell it today you would earn a total of 178.00 from holding Maple Leaf Foods or generate 8.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
PHN Multi Style All Cap vs. Maple Leaf Foods
Performance |
| Timeline |
| PHN Multi Style |
| Maple Leaf Foods |
PHN Multi and Maple Leaf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PHN Multi and Maple Leaf
The main advantage of trading using opposite PHN Multi and Maple Leaf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHN Multi position performs unexpectedly, Maple Leaf 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 Maple Leaf will offset losses from the drop in Maple Leaf's long position.| PHN Multi vs. BMO Aggregate Bond | PHN Multi vs. iShares Canadian HYBrid | PHN Multi vs. Brompton European Dividend | PHN Multi vs. Solar Alliance Energy |
| Maple Leaf vs. Saputo Inc | Maple Leaf vs. Forstrong Global Income | Maple Leaf vs. iShares Canadian HYBrid | Maple Leaf vs. Brompton European Dividend |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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