Correlation Between Phoenix New and TechTarget
Can any of the company-specific risk be diversified away by investing in both Phoenix New and TechTarget 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 TechTarget 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 TechTarget, you can compare the effects of market volatilities on Phoenix New and TechTarget 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 TechTarget. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phoenix New and TechTarget.
Diversification Opportunities for Phoenix New and TechTarget
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Phoenix and TechTarget is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Phoenix New Media and TechTarget in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TechTarget 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 TechTarget. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TechTarget has no effect on the direction of Phoenix New i.e., Phoenix New and TechTarget go up and down completely randomly.
Pair Corralation between Phoenix New and TechTarget
Given the investment horizon of 90 days Phoenix New Media is expected to under-perform the TechTarget. In addition to that, Phoenix New is 1.57 times more volatile than TechTarget. It trades about -0.04 of its total potential returns per unit of risk. TechTarget is currently generating about 0.08 per unit of volatility. If you would invest 2,975 in TechTarget on August 31, 2024 and sell it today you would earn a total of 145.00 from holding TechTarget or generate 4.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Phoenix New Media vs. TechTarget
Performance |
| Timeline |
| Phoenix New Media |
| TechTarget |
Phoenix New and TechTarget Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phoenix New and TechTarget
The main advantage of trading using opposite Phoenix New and TechTarget positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phoenix New position performs unexpectedly, TechTarget 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 TechTarget will offset losses from the drop in TechTarget's long position.| Phoenix New vs. Onfolio Holdings | Phoenix New vs. Starbox Group Holdings | Phoenix New vs. MediaAlpha | Phoenix New vs. Metalpha Technology Holding |
| TechTarget vs. Sabio Holdings | TechTarget vs. Comscore | TechTarget vs. Outbrain | TechTarget vs. Rightmove Plc |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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