Correlation Between AGAPE GLOBAL and PHOENIX BEVERAGES
Can any of the company-specific risk be diversified away by investing in both AGAPE GLOBAL and PHOENIX BEVERAGES 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 AGAPE GLOBAL and PHOENIX BEVERAGES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGAPE GLOBAL INVESTMENTS and PHOENIX BEVERAGES LTD, you can compare the effects of market volatilities on AGAPE GLOBAL and PHOENIX BEVERAGES 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 AGAPE GLOBAL with a short position of PHOENIX BEVERAGES. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGAPE GLOBAL and PHOENIX BEVERAGES.
Diversification Opportunities for AGAPE GLOBAL and PHOENIX BEVERAGES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AGAPE and PHOENIX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AGAPE GLOBAL INVESTMENTS and PHOENIX BEVERAGES LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHOENIX BEVERAGES LTD and AGAPE GLOBAL 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 AGAPE GLOBAL INVESTMENTS are associated (or correlated) with PHOENIX BEVERAGES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHOENIX BEVERAGES LTD has no effect on the direction of AGAPE GLOBAL i.e., AGAPE GLOBAL and PHOENIX BEVERAGES go up and down completely randomly.
Pair Corralation between AGAPE GLOBAL and PHOENIX BEVERAGES
Assuming the 90 days trading horizon AGAPE GLOBAL INVESTMENTS is expected to under-perform the PHOENIX BEVERAGES. In addition to that, AGAPE GLOBAL is 3.0 times more volatile than PHOENIX BEVERAGES LTD. It trades about -0.07 of its total potential returns per unit of risk. PHOENIX BEVERAGES LTD is currently generating about 0.03 per unit of volatility. If you would invest 51,800 in PHOENIX BEVERAGES LTD on November 5, 2024 and sell it today you would earn a total of 3,100 from holding PHOENIX BEVERAGES LTD or generate 5.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 77.05% |
| Values | Daily Returns |
AGAPE GLOBAL INVESTMENTS vs. PHOENIX BEVERAGES LTD
Performance |
| Timeline |
| AGAPE GLOBAL INVESTMENTS |
| PHOENIX BEVERAGES LTD |
AGAPE GLOBAL and PHOENIX BEVERAGES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGAPE GLOBAL and PHOENIX BEVERAGES
The main advantage of trading using opposite AGAPE GLOBAL and PHOENIX BEVERAGES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGAPE GLOBAL position performs unexpectedly, PHOENIX BEVERAGES 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 BEVERAGES will offset losses from the drop in PHOENIX BEVERAGES's long position.| AGAPE GLOBAL vs. ASTORIA INVESTMENT LTD | AGAPE GLOBAL vs. BAYPORT MANAGEMENT LTD | AGAPE GLOBAL vs. UNITED INVESTMENTS LTD | AGAPE GLOBAL vs. NATIONAL INVESTMENT TRUST |
| PHOENIX BEVERAGES vs. MAURITIUS CHEMICAL FERTILIZER | PHOENIX BEVERAGES vs. ABC BANKING PORATION | PHOENIX BEVERAGES vs. QUALITY BEVERAGES LTD | PHOENIX BEVERAGES vs. CONSTANCE HOTELS 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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