Correlation Between Phoenix New and Yelp
Can any of the company-specific risk be diversified away by investing in both Phoenix New and Yelp 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 Yelp 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 Yelp Inc, you can compare the effects of market volatilities on Phoenix New and Yelp 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 Yelp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phoenix New and Yelp.
Diversification Opportunities for Phoenix New and Yelp
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Phoenix and Yelp is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Phoenix New Media and Yelp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yelp 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 Yelp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yelp Inc has no effect on the direction of Phoenix New i.e., Phoenix New and Yelp go up and down completely randomly.
Pair Corralation between Phoenix New and Yelp
Given the investment horizon of 90 days Phoenix New Media is expected to generate 3.03 times more return on investment than Yelp. However, Phoenix New is 3.03 times more volatile than Yelp Inc. It trades about 0.02 of its potential returns per unit of risk. Yelp Inc is currently generating about 0.03 per unit of risk. If you would invest 256.00 in Phoenix New Media on August 27, 2024 and sell it today you would lose (4.00) from holding Phoenix New Media or give up 1.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Phoenix New Media vs. Yelp Inc
Performance |
| Timeline |
| Phoenix New Media |
| Yelp Inc |
Phoenix New and Yelp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phoenix New and Yelp
The main advantage of trading using opposite Phoenix New and Yelp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phoenix New position performs unexpectedly, Yelp 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 Yelp will offset losses from the drop in Yelp's long position.| Phoenix New vs. Onfolio Holdings | Phoenix New vs. Starbox Group Holdings | Phoenix New vs. MediaAlpha | Phoenix New vs. Metalpha Technology Holding |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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