Correlation Between MS Autotech and Phoenix Materials
Can any of the company-specific risk be diversified away by investing in both MS Autotech and Phoenix Materials at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining MS Autotech and Phoenix Materials into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MS Autotech CoLtd and Phoenix Materials Co, you can compare the effects of market volatilities on MS Autotech and Phoenix Materials 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 MS Autotech with a short position of Phoenix Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of MS Autotech and Phoenix Materials.
Diversification Opportunities for MS Autotech and Phoenix Materials
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 123040 and Phoenix is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding MS Autotech CoLtd and Phoenix Materials Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix Materials and MS Autotech 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 MS Autotech CoLtd are associated (or correlated) with Phoenix Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phoenix Materials has no effect on the direction of MS Autotech i.e., MS Autotech and Phoenix Materials go up and down completely randomly.
Pair Corralation between MS Autotech and Phoenix Materials
Assuming the 90 days trading horizon MS Autotech CoLtd is expected to under-perform the Phoenix Materials. But the stock apears to be less risky and, when comparing its historical volatility, MS Autotech CoLtd is 1.45 times less risky than Phoenix Materials. The stock trades about -0.21 of its potential returns per unit of risk. The Phoenix Materials Co is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 78,000 in Phoenix Materials Co on August 29, 2024 and sell it today you would lose (6,000) from holding Phoenix Materials Co or give up 7.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
MS Autotech CoLtd vs. Phoenix Materials Co
Performance |
| Timeline |
| MS Autotech CoLtd |
| Phoenix Materials |
MS Autotech and Phoenix Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MS Autotech and Phoenix Materials
The main advantage of trading using opposite MS Autotech and Phoenix Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MS Autotech position performs unexpectedly, Phoenix Materials 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 Phoenix Materials will offset losses from the drop in Phoenix Materials' long position.| MS Autotech vs. KMH Hitech Co | MS Autotech vs. GemVaxKAEL CoLtd | MS Autotech vs. Busan Industrial Co | MS Autotech vs. Busan Ind |
| Phoenix Materials vs. Daou Data Corp | Phoenix Materials vs. Busan Industrial Co | Phoenix Materials vs. Busan Ind | Phoenix Materials vs. Shinhan WTI Futures |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |