Correlation Between CHINA PACINGRGDR5 and Phoenix Group
Can any of the company-specific risk be diversified away by investing in both CHINA PACINGRGDR5 and Phoenix Group 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 CHINA PACINGRGDR5 and Phoenix Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHINA PACINGRGDR5 YC1 and Phoenix Group Holdings, you can compare the effects of market volatilities on CHINA PACINGRGDR5 and Phoenix Group 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 CHINA PACINGRGDR5 with a short position of Phoenix Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHINA PACINGRGDR5 and Phoenix Group.
Diversification Opportunities for CHINA PACINGRGDR5 and Phoenix Group
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CHINA and Phoenix is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding CHINA PACINGRGDR5 YC1 and Phoenix Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix Group Holdings and CHINA PACINGRGDR5 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 CHINA PACINGRGDR5 YC1 are associated (or correlated) with Phoenix Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phoenix Group Holdings has no effect on the direction of CHINA PACINGRGDR5 i.e., CHINA PACINGRGDR5 and Phoenix Group go up and down completely randomly.
Pair Corralation between CHINA PACINGRGDR5 and Phoenix Group
Assuming the 90 days trading horizon CHINA PACINGRGDR5 YC1 is expected to under-perform the Phoenix Group. In addition to that, CHINA PACINGRGDR5 is 1.01 times more volatile than Phoenix Group Holdings. It trades about -0.16 of its total potential returns per unit of risk. Phoenix Group Holdings is currently generating about -0.04 per unit of volatility. 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 |
CHINA PACINGRGDR5 YC1 vs. Phoenix Group Holdings
Performance |
| Timeline |
| CHINA PACINGRGDR5 YC1 |
| Phoenix Group Holdings |
CHINA PACINGRGDR5 and Phoenix Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHINA PACINGRGDR5 and Phoenix Group
The main advantage of trading using opposite CHINA PACINGRGDR5 and Phoenix Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHINA PACINGRGDR5 position performs unexpectedly, Phoenix Group 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 Group will offset losses from the drop in Phoenix Group's long position.| CHINA PACINGRGDR5 vs. Siemens Healthineers AG | CHINA PACINGRGDR5 vs. WESANA HEALTH HOLD | CHINA PACINGRGDR5 vs. Molina Healthcare | CHINA PACINGRGDR5 vs. SHIP HEALTHCARE HLDGINC |
| Phoenix Group vs. SIERRA METALS | Phoenix Group vs. Forsys Metals Corp | Phoenix Group vs. Osisko Metals | Phoenix Group vs. Air Transport Services |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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