Correlation Between Phoenix New and Onfolio Holdings
Can any of the company-specific risk be diversified away by investing in both Phoenix New and Onfolio Holdings 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 Onfolio Holdings 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 Onfolio Holdings, you can compare the effects of market volatilities on Phoenix New and Onfolio Holdings 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 Onfolio Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phoenix New and Onfolio Holdings.
Diversification Opportunities for Phoenix New and Onfolio Holdings
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Phoenix and Onfolio is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Phoenix New Media and Onfolio Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Onfolio Holdings 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 Onfolio Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Onfolio Holdings has no effect on the direction of Phoenix New i.e., Phoenix New and Onfolio Holdings go up and down completely randomly.
Pair Corralation between Phoenix New and Onfolio Holdings
Given the investment horizon of 90 days Phoenix New is expected to generate 1.64 times less return on investment than Onfolio Holdings. But when comparing it to its historical volatility, Phoenix New Media is 1.18 times less risky than Onfolio Holdings. It trades about 0.02 of its potential returns per unit of risk. Onfolio Holdings is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 150.00 in Onfolio Holdings on September 13, 2024 and sell it today you would earn a total of 2.00 from holding Onfolio Holdings or generate 1.33% 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. Onfolio Holdings
Performance |
| Timeline |
| Phoenix New Media |
| Onfolio Holdings |
Phoenix New and Onfolio Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phoenix New and Onfolio Holdings
The main advantage of trading using opposite Phoenix New and Onfolio Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phoenix New position performs unexpectedly, Onfolio Holdings 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 Onfolio Holdings will offset losses from the drop in Onfolio Holdings' long position.| Phoenix New vs. Onfolio Holdings | Phoenix New vs. Starbox Group Holdings | Phoenix New vs. MediaAlpha | Phoenix New vs. Metalpha Technology Holding |
| Onfolio Holdings vs. Vivid Seats | Onfolio Holdings vs. EverQuote Class A | Onfolio Holdings vs. Asset Entities Class | Onfolio Holdings vs. Zhihu Inc ADR |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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