Correlation Between AFREXIMBANK and PHOENIX INVESTMENT
Can any of the company-specific risk be diversified away by investing in both AFREXIMBANK and PHOENIX INVESTMENT 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 AFREXIMBANK and PHOENIX INVESTMENT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AFREXIMBANK and PHOENIX INVESTMENT PANY, you can compare the effects of market volatilities on AFREXIMBANK and PHOENIX INVESTMENT 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 AFREXIMBANK with a short position of PHOENIX INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFREXIMBANK and PHOENIX INVESTMENT.
Diversification Opportunities for AFREXIMBANK and PHOENIX INVESTMENT
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AFREXIMBANK and PHOENIX is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding AFREXIMBANK and PHOENIX INVESTMENT PANY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHOENIX INVESTMENT PANY and AFREXIMBANK 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 AFREXIMBANK are associated (or correlated) with PHOENIX INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHOENIX INVESTMENT PANY has no effect on the direction of AFREXIMBANK i.e., AFREXIMBANK and PHOENIX INVESTMENT go up and down completely randomly.
Pair Corralation between AFREXIMBANK and PHOENIX INVESTMENT
Assuming the 90 days trading horizon AFREXIMBANK is expected to generate 7.09 times less return on investment than PHOENIX INVESTMENT. But when comparing it to its historical volatility, AFREXIMBANK is 2.54 times less risky than PHOENIX INVESTMENT. It trades about 0.01 of its potential returns per unit of risk. PHOENIX INVESTMENT PANY is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 33,521 in PHOENIX INVESTMENT PANY on August 27, 2024 and sell it today you would earn a total of 3,479 from holding PHOENIX INVESTMENT PANY or generate 10.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 58.04% |
| Values | Daily Returns |
AFREXIMBANK vs. PHOENIX INVESTMENT PANY
Performance |
| Timeline |
| AFREXIMBANK |
| PHOENIX INVESTMENT PANY |
AFREXIMBANK and PHOENIX INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AFREXIMBANK and PHOENIX INVESTMENT
The main advantage of trading using opposite AFREXIMBANK and PHOENIX INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFREXIMBANK position performs unexpectedly, PHOENIX INVESTMENT 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 INVESTMENT will offset losses from the drop in PHOENIX INVESTMENT's long position.| AFREXIMBANK vs. MCB GROUP LTD | AFREXIMBANK vs. LOTTOTECH LTD | AFREXIMBANK vs. NEW MAURITIUS HOTELS | AFREXIMBANK vs. MIWA SUGAR LIMITED |
| PHOENIX INVESTMENT vs. MCB GROUP LTD | PHOENIX INVESTMENT vs. LOTTOTECH LTD | PHOENIX INVESTMENT vs. NEW MAURITIUS HOTELS | PHOENIX INVESTMENT vs. MIWA SUGAR LIMITED |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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