Correlation Between Tangerine Equity and PHN Canadian
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By analyzing existing cross correlation between Tangerine Equity Growth and PHN Canadian Equity, you can compare the effects of market volatilities on Tangerine Equity and PHN Canadian 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 Tangerine Equity with a short position of PHN Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tangerine Equity and PHN Canadian.
Diversification Opportunities for Tangerine Equity and PHN Canadian
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tangerine and PHN is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Tangerine Equity Growth and PHN Canadian Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHN Canadian Equity and Tangerine Equity 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 Tangerine Equity Growth are associated (or correlated) with PHN Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHN Canadian Equity has no effect on the direction of Tangerine Equity i.e., Tangerine Equity and PHN Canadian go up and down completely randomly.
Pair Corralation between Tangerine Equity and PHN Canadian
Assuming the 90 days trading horizon Tangerine Equity is expected to generate 1.51 times less return on investment than PHN Canadian. In addition to that, Tangerine Equity is 1.19 times more volatile than PHN Canadian Equity. It trades about 0.31 of its total potential returns per unit of risk. PHN Canadian Equity is currently generating about 0.56 per unit of volatility. If you would invest 2,154 in PHN Canadian Equity on September 1, 2024 and sell it today you would earn a total of 117.00 from holding PHN Canadian Equity or generate 5.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Tangerine Equity Growth vs. PHN Canadian Equity
Performance |
| Timeline |
| Tangerine Equity Growth |
| PHN Canadian Equity |
Tangerine Equity and PHN Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tangerine Equity and PHN Canadian
The main advantage of trading using opposite Tangerine Equity and PHN Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tangerine Equity position performs unexpectedly, PHN Canadian 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 PHN Canadian will offset losses from the drop in PHN Canadian's long position.| Tangerine Equity vs. RBC Select Balanced | Tangerine Equity vs. RBC Portefeuille de | Tangerine Equity vs. Edgepoint Global Portfolio | Tangerine Equity vs. TD Comfort Balanced |
| PHN Canadian vs. Fidelity Tactical High | PHN Canadian vs. Global Healthcare Income | PHN Canadian vs. CI Global Alpha | PHN Canadian vs. CI Global Alpha |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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