Correlation Between Phoenix New and Gogo
Can any of the company-specific risk be diversified away by investing in both Phoenix New and Gogo 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 Phoenix New and Gogo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phoenix New Media and Gogo Inc, you can compare the effects of market volatilities on Phoenix New and Gogo 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 Phoenix New with a short position of Gogo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phoenix New and Gogo.
Diversification Opportunities for Phoenix New and Gogo
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Phoenix and Gogo is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Phoenix New Media and Gogo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gogo Inc and Phoenix New 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 Phoenix New Media are associated (or correlated) with Gogo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gogo Inc has no effect on the direction of Phoenix New i.e., Phoenix New and Gogo go up and down completely randomly.
Pair Corralation between Phoenix New and Gogo
Given the investment horizon of 90 days Phoenix New Media is expected to under-perform the Gogo. But the stock apears to be less risky and, when comparing its historical volatility, Phoenix New Media is 1.61 times less risky than Gogo. The stock trades about -0.13 of its potential returns per unit of risk. The Gogo Inc is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 722.00 in Gogo Inc on August 27, 2024 and sell it today you would earn a total of 90.00 from holding Gogo Inc or generate 12.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Phoenix New Media vs. Gogo Inc
Performance |
| Timeline |
| Phoenix New Media |
| Gogo Inc |
Phoenix New and Gogo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phoenix New and Gogo
The main advantage of trading using opposite Phoenix New and Gogo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phoenix New position performs unexpectedly, Gogo 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 Gogo will offset losses from the drop in Gogo's long position.| Phoenix New vs. Onfolio Holdings | Phoenix New vs. Starbox Group Holdings | Phoenix New vs. MediaAlpha | Phoenix New vs. Metalpha Technology Holding |
| Gogo vs. Digital Ally | Gogo vs. Kandi Technologies Group | Gogo vs. Yelp Inc | Gogo vs. National Beverage Corp |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |