Correlation Between INNOX Advanced and Phoenix Materials
Can any of the company-specific risk be diversified away by investing in both INNOX Advanced 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 INNOX Advanced and Phoenix Materials into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INNOX Advanced Materials and Phoenix Materials Co, you can compare the effects of market volatilities on INNOX Advanced 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 INNOX Advanced with a short position of Phoenix Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of INNOX Advanced and Phoenix Materials.
Diversification Opportunities for INNOX Advanced and Phoenix Materials
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between INNOX and Phoenix is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding INNOX Advanced Materials and Phoenix Materials Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix Materials and INNOX Advanced 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 INNOX Advanced Materials 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 INNOX Advanced i.e., INNOX Advanced and Phoenix Materials go up and down completely randomly.
Pair Corralation between INNOX Advanced and Phoenix Materials
Assuming the 90 days trading horizon INNOX Advanced Materials is expected to generate 0.65 times more return on investment than Phoenix Materials. However, INNOX Advanced Materials is 1.54 times less risky than Phoenix Materials. It trades about -0.04 of its potential returns per unit of risk. Phoenix Materials Co is currently generating about -0.05 per unit of risk. If you would invest 3,730,440 in INNOX Advanced Materials on August 31, 2024 and sell it today you would lose (1,505,440) from holding INNOX Advanced Materials or give up 40.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
INNOX Advanced Materials vs. Phoenix Materials Co
Performance |
| Timeline |
| INNOX Advanced Materials |
| Phoenix Materials |
INNOX Advanced and Phoenix Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INNOX Advanced and Phoenix Materials
The main advantage of trading using opposite INNOX Advanced and Phoenix Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INNOX Advanced 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.| INNOX Advanced vs. SK Hynix | INNOX Advanced vs. LX Semicon Co | INNOX Advanced vs. Tokai Carbon Korea | INNOX Advanced vs. People Technology |
| Phoenix Materials vs. Dongsin Engineering Construction | Phoenix Materials vs. Doosan Fuel Cell | Phoenix Materials vs. Daishin Balance 1 | Phoenix Materials vs. Total Soft Bank |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |