Correlation Between Global X and PHN Multi
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By analyzing existing cross correlation between Global X Active and PHN Multi Style All Cap, you can compare the effects of market volatilities on Global X and PHN Multi 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 Global X with a short position of PHN Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and PHN Multi.
Diversification Opportunities for Global X and PHN Multi
Weak diversification
The 3 months correlation between Global and PHN is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Global X Active and PHN Multi Style All Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHN Multi Style and Global X 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 Global X Active are associated (or correlated) with PHN Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHN Multi Style has no effect on the direction of Global X i.e., Global X and PHN Multi go up and down completely randomly.
Pair Corralation between Global X and PHN Multi
Assuming the 90 days trading horizon Global X is expected to generate 1.31 times less return on investment than PHN Multi. But when comparing it to its historical volatility, Global X Active is 1.4 times less risky than PHN Multi. It trades about 0.11 of its potential returns per unit of risk. PHN Multi Style All Cap is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,970 in PHN Multi Style All Cap on September 2, 2024 and sell it today you would earn a total of 890.00 from holding PHN Multi Style All Cap or generate 45.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Global X Active vs. PHN Multi Style All Cap
Performance |
| Timeline |
| Global X Active |
| PHN Multi Style |
Global X and PHN Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and PHN Multi
The main advantage of trading using opposite Global X and PHN Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, PHN Multi 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 PHN Multi will offset losses from the drop in PHN Multi's long position.The idea behind Global X Active and PHN Multi Style All Cap pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| PHN Multi vs. PHN Canadian Equity | PHN Multi vs. Dynamic Global Fixed | PHN Multi vs. Mawer Global Equity |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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