Correlation Between Cornish Metals and Phoenix Group
Can any of the company-specific risk be diversified away by investing in both Cornish Metals 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 Cornish Metals and Phoenix Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cornish Metals and Phoenix Group Holdings, you can compare the effects of market volatilities on Cornish Metals 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 Cornish Metals with a short position of Phoenix Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cornish Metals and Phoenix Group.
Diversification Opportunities for Cornish Metals and Phoenix Group
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cornish and Phoenix is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Cornish Metals 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 Cornish Metals 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 Cornish Metals 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 Cornish Metals i.e., Cornish Metals and Phoenix Group go up and down completely randomly.
Pair Corralation between Cornish Metals and Phoenix Group
Assuming the 90 days trading horizon Cornish Metals is expected to generate 3.23 times less return on investment than Phoenix Group. In addition to that, Cornish Metals is 3.04 times more volatile than Phoenix Group Holdings. It trades about 0.0 of its total potential returns per unit of risk. Phoenix Group Holdings is currently generating about 0.05 per unit of volatility. If you would invest 44,964 in Phoenix Group Holdings on September 5, 2024 and sell it today you would earn a total of 6,686 from holding Phoenix Group Holdings or generate 14.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cornish Metals vs. Phoenix Group Holdings
Performance |
| Timeline |
| Cornish Metals |
| Phoenix Group Holdings |
Cornish Metals and Phoenix Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cornish Metals and Phoenix Group
The main advantage of trading using opposite Cornish Metals and Phoenix Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cornish Metals 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.| Cornish Metals vs. Target Healthcare REIT | Cornish Metals vs. Universal Health Services | Cornish Metals vs. Induction Healthcare Group | Cornish Metals vs. Abingdon Health Plc |
| Phoenix Group vs. Walmart | Phoenix Group vs. BYD Co | Phoenix Group vs. Volkswagen AG | Phoenix Group vs. Volkswagen AG Non Vtg |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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