Correlation Between ASOS Plc and Phonex
Can any of the company-specific risk be diversified away by investing in both ASOS Plc and Phonex 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 ASOS Plc and Phonex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASOS Plc and Phonex Inc, you can compare the effects of market volatilities on ASOS Plc and Phonex 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 ASOS Plc with a short position of Phonex. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASOS Plc and Phonex.
Diversification Opportunities for ASOS Plc and Phonex
Significant diversification
The 3 months correlation between ASOS and Phonex is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding ASOS Plc and Phonex Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phonex Inc and ASOS Plc 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 ASOS Plc are associated (or correlated) with Phonex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phonex Inc has no effect on the direction of ASOS Plc i.e., ASOS Plc and Phonex go up and down completely randomly.
Pair Corralation between ASOS Plc and Phonex
If you would invest 106.00 in Phonex Inc on September 13, 2024 and sell it today you would earn a total of 11.00 from holding Phonex Inc or generate 10.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASOS Plc vs. Phonex Inc
Performance |
| Timeline |
| ASOS Plc |
| Phonex Inc |
ASOS Plc and Phonex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASOS Plc and Phonex
The main advantage of trading using opposite ASOS Plc and Phonex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASOS Plc position performs unexpectedly, Phonex 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 Phonex will offset losses from the drop in Phonex's long position.| ASOS Plc vs. Phonex Inc | ASOS Plc vs. Delivery Hero SE | ASOS Plc vs. 1StdibsCom | ASOS Plc vs. Natural Health Trend |
| Phonex vs. Delivery Hero SE | Phonex vs. 1StdibsCom | Phonex vs. Natural Health Trend | Phonex vs. Emerge Commerce |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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