Correlation Between PHN Multi and BMO Global
Specify exactly 2 symbols:
By analyzing existing cross correlation between PHN Multi Style All Cap and BMO Global High, you can compare the effects of market volatilities on PHN Multi and BMO Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHN Multi and BMO Global.
Diversification Opportunities for PHN Multi and BMO Global
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PHN and BMO is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding PHN Multi Style All Cap and BMO Global High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BMO Global 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BMO Global High has no effect on the direction of PHN Multi i.e., PHN Multi and BMO Global go up and down completely randomly.
Pair Corralation between PHN Multi and BMO Global
Assuming the 90 days trading horizon PHN Multi Style All Cap is expected to under-perform the BMO Global. In addition to that, PHN Multi is 1.53 times more volatile than BMO Global High. It trades about -0.1 of its total potential returns per unit of risk. BMO Global High is currently generating about 0.04 per unit of volatility. If you would invest 3,335 in BMO Global High on November 28, 2024 and sell it today you would earn a total of 13.00 from holding BMO Global High or generate 0.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
PHN Multi Style All Cap vs. BMO Global High
Performance |
| Timeline |
| PHN Multi Style |
| BMO Global High |
PHN Multi and BMO Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PHN Multi and BMO Global
The main advantage of trading using opposite PHN Multi and BMO Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHN Multi position performs unexpectedly, BMO Global 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 Global will offset losses from the drop in BMO Global's long position.| PHN Multi vs. Fidelity Tactical High | PHN Multi vs. Fidelity ClearPath 2045 | PHN Multi vs. Bloom Select Income | PHN Multi vs. Mackenzie Ivy European |
| BMO Global vs. BMO Short Term Bond | BMO Global vs. BMO Canadian Bank | BMO Global vs. BMO Aggregate Bond | BMO Global vs. BMO Balanced ETF |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |