Correlation Between PHN Multi and IShares MSCI
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By analyzing existing cross correlation between PHN Multi Style All Cap and iShares MSCI Min, you can compare the effects of market volatilities on PHN Multi and IShares MSCI 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 IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHN Multi and IShares MSCI.
Diversification Opportunities for PHN Multi and IShares MSCI
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between PHN and IShares is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding PHN Multi Style All Cap and iShares MSCI Min in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI Min 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 IShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares MSCI Min has no effect on the direction of PHN Multi i.e., PHN Multi and IShares MSCI go up and down completely randomly.
Pair Corralation between PHN Multi and IShares MSCI
Assuming the 90 days trading horizon PHN Multi Style All Cap is expected to generate 1.75 times more return on investment than IShares MSCI. However, PHN Multi is 1.75 times more volatile than iShares MSCI Min. It trades about 0.16 of its potential returns per unit of risk. iShares MSCI Min is currently generating about 0.19 per unit of risk. If you would invest 2,238 in PHN Multi Style All Cap on August 29, 2024 and sell it today you would earn a total of 599.00 from holding PHN Multi Style All Cap or generate 26.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.04% |
| Values | Daily Returns |
PHN Multi Style All Cap vs. iShares MSCI Min
Performance |
| Timeline |
| PHN Multi Style |
| iShares MSCI Min |
PHN Multi and IShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PHN Multi and IShares MSCI
The main advantage of trading using opposite PHN Multi and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHN Multi position performs unexpectedly, IShares MSCI 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 IShares MSCI will offset losses from the drop in IShares MSCI's long position.| PHN Multi vs. RBC Dividend | PHN Multi vs. Mawer Equity A | PHN Multi vs. BMO Aggregate Bond | PHN Multi vs. iShares Canadian HYBrid |
| IShares MSCI vs. iShares MSCI Min | IShares MSCI vs. iShares MSCI Canada | IShares MSCI vs. iShares MSCI Min | IShares MSCI vs. iShares MSCI Min |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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