Correlation Between PHN Multi and BMO Europe
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By analyzing existing cross correlation between PHN Multi Style All Cap and BMO Europe High, you can compare the effects of market volatilities on PHN Multi and BMO Europe 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 BMO Europe. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHN Multi and BMO Europe.
Diversification Opportunities for PHN Multi and BMO Europe
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PHN and BMO is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding PHN Multi Style All Cap and BMO Europe High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BMO Europe High 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 BMO Europe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BMO Europe High has no effect on the direction of PHN Multi i.e., PHN Multi and BMO Europe go up and down completely randomly.
Pair Corralation between PHN Multi and BMO Europe
Assuming the 90 days trading horizon PHN Multi Style All Cap is expected to generate 1.47 times more return on investment than BMO Europe. However, PHN Multi is 1.47 times more volatile than BMO Europe High. It trades about 0.31 of its potential returns per unit of risk. BMO Europe High is currently generating about -0.07 per unit of risk. If you would invest 2,711 in PHN Multi Style All Cap on September 1, 2024 and sell it today you would earn a total of 151.00 from holding PHN Multi Style All Cap or generate 5.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
PHN Multi Style All Cap vs. BMO Europe High
Performance |
| Timeline |
| PHN Multi Style |
| BMO Europe High |
PHN Multi and BMO Europe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PHN Multi and BMO Europe
The main advantage of trading using opposite PHN Multi and BMO Europe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHN Multi position performs unexpectedly, BMO Europe 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 BMO Europe will offset losses from the drop in BMO Europe's long position.| PHN Multi vs. Fidelity Tactical High | PHN Multi vs. Fidelity ClearPath 2045 | PHN Multi vs. Global Healthcare Income | PHN Multi vs. CI Global Alpha |
| BMO Europe vs. BMO Covered Call | BMO Europe vs. BMO High Dividend | BMO Europe vs. BMO Europe High | BMO Europe vs. BMO Covered Call |
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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