Correlation Between PHN Frankfurt and CHINA TONTINE
Can any of the company-specific risk be diversified away by investing in both PHN Frankfurt and CHINA TONTINE 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 PHN Frankfurt and CHINA TONTINE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PHN Frankfurt and CHINA TONTINE WINES, you can compare the effects of market volatilities on PHN Frankfurt and CHINA TONTINE 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 Frankfurt with a short position of CHINA TONTINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHN Frankfurt and CHINA TONTINE.
Diversification Opportunities for PHN Frankfurt and CHINA TONTINE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PHN and CHINA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PHN Frankfurt and CHINA TONTINE WINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA TONTINE WINES and PHN Frankfurt 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 Frankfurt are associated (or correlated) with CHINA TONTINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA TONTINE WINES has no effect on the direction of PHN Frankfurt i.e., PHN Frankfurt and CHINA TONTINE go up and down completely randomly.
Pair Corralation between PHN Frankfurt and CHINA TONTINE
If you would invest 202.00 in PHN Frankfurt on September 12, 2024 and sell it today you would earn a total of 0.00 from holding PHN Frankfurt or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
PHN Frankfurt vs. CHINA TONTINE WINES
Performance |
| Timeline |
| PHN Frankfurt |
| CHINA TONTINE WINES |
PHN Frankfurt and CHINA TONTINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PHN Frankfurt and CHINA TONTINE
The main advantage of trading using opposite PHN Frankfurt and CHINA TONTINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHN Frankfurt position performs unexpectedly, CHINA TONTINE 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 TONTINE will offset losses from the drop in CHINA TONTINE's long position.| PHN Frankfurt vs. Westinghouse Air Brake | PHN Frankfurt vs. JIAHUA STORES | PHN Frankfurt vs. Alaska Air Group | PHN Frankfurt vs. ETFS Coffee ETC |
| CHINA TONTINE vs. NAKED WINES PLC | CHINA TONTINE vs. Superior Plus Corp | CHINA TONTINE vs. SIVERS SEMICONDUCTORS AB | CHINA TONTINE vs. CHINA HUARONG ENERHD 50 |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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