Correlation Between Phoenix Group and China Taiping
Can any of the company-specific risk be diversified away by investing in both Phoenix Group and China Taiping 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 Phoenix Group and China Taiping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phoenix Group Holdings and China Taiping Insurance, you can compare the effects of market volatilities on Phoenix Group and China Taiping 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 Phoenix Group with a short position of China Taiping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phoenix Group and China Taiping.
Diversification Opportunities for Phoenix Group and China Taiping
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Phoenix and China is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Phoenix Group Holdings and China Taiping Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Taiping Insurance and Phoenix Group 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 Phoenix Group Holdings are associated (or correlated) with China Taiping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Taiping Insurance has no effect on the direction of Phoenix Group i.e., Phoenix Group and China Taiping go up and down completely randomly.
Pair Corralation between Phoenix Group and China Taiping
Assuming the 90 days horizon Phoenix Group Holdings is expected to generate 0.84 times more return on investment than China Taiping. However, Phoenix Group Holdings is 1.19 times less risky than China Taiping. It trades about -0.04 of its potential returns per unit of risk. China Taiping Insurance is currently generating about -0.09 per unit of risk. If you would invest 603.00 in Phoenix Group Holdings on October 25, 2024 and sell it today you would lose (11.00) from holding Phoenix Group Holdings or give up 1.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Phoenix Group Holdings vs. China Taiping Insurance
Performance |
| Timeline |
| Phoenix Group Holdings |
| China Taiping Insurance |
Phoenix Group and China Taiping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phoenix Group and China Taiping
The main advantage of trading using opposite Phoenix Group and China Taiping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phoenix Group position performs unexpectedly, China Taiping 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 China Taiping will offset losses from the drop in China Taiping's long position.| Phoenix Group vs. SIERRA METALS | Phoenix Group vs. Forsys Metals Corp | Phoenix Group vs. Osisko Metals | Phoenix Group vs. Air Transport Services |
| China Taiping vs. TEXAS ROADHOUSE | China Taiping vs. Goosehead Insurance | China Taiping vs. G III Apparel Group | China Taiping vs. Transport International Holdings |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |