Correlation Between PHN Multi and Pembina Pipeline
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By analyzing existing cross correlation between PHN Multi Style All Cap and Pembina Pipeline Corp, you can compare the effects of market volatilities on PHN Multi and Pembina Pipeline 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 Pembina Pipeline. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHN Multi and Pembina Pipeline.
Diversification Opportunities for PHN Multi and Pembina Pipeline
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PHN and Pembina is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding PHN Multi Style All Cap and Pembina Pipeline Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pembina Pipeline Corp 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 Pembina Pipeline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pembina Pipeline Corp has no effect on the direction of PHN Multi i.e., PHN Multi and Pembina Pipeline go up and down completely randomly.
Pair Corralation between PHN Multi and Pembina Pipeline
Assuming the 90 days trading horizon PHN Multi Style All Cap is expected to under-perform the Pembina Pipeline. In addition to that, PHN Multi is 4.81 times more volatile than Pembina Pipeline Corp. It trades about -0.18 of its total potential returns per unit of risk. Pembina Pipeline Corp is currently generating about 0.19 per unit of volatility. If you would invest 2,342 in Pembina Pipeline Corp on October 1, 2024 and sell it today you would earn a total of 44.00 from holding Pembina Pipeline Corp or generate 1.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
PHN Multi Style All Cap vs. Pembina Pipeline Corp
Performance |
| Timeline |
| PHN Multi Style |
| Pembina Pipeline Corp |
PHN Multi and Pembina Pipeline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PHN Multi and Pembina Pipeline
The main advantage of trading using opposite PHN Multi and Pembina Pipeline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHN Multi position performs unexpectedly, Pembina Pipeline 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 Pembina Pipeline will offset losses from the drop in Pembina Pipeline's long position.| PHN Multi vs. Mawer Equity A | PHN Multi vs. TD Index Fund | PHN Multi vs. iShares Canadian HYBrid | PHN Multi vs. Altagas Cum Red |
| Pembina Pipeline vs. Enbridge Pref 11 | Pembina Pipeline vs. E Split Corp | Pembina Pipeline vs. Sage Potash 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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