Correlation Between SANLAM and Phoenix Group
Can any of the company-specific risk be diversified away by investing in both SANLAM and Phoenix Group 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 SANLAM and Phoenix Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SANLAM LTD RC 01 and Phoenix Group Holdings, you can compare the effects of market volatilities on SANLAM and Phoenix Group 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 SANLAM with a short position of Phoenix Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of SANLAM and Phoenix Group.
Diversification Opportunities for SANLAM and Phoenix Group
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SANLAM and Phoenix is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding SANLAM LTD RC 01 and Phoenix Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix Group Holdings and SANLAM 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 SANLAM LTD RC 01 are associated (or correlated) with Phoenix Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phoenix Group Holdings has no effect on the direction of SANLAM i.e., SANLAM and Phoenix Group go up and down completely randomly.
Pair Corralation between SANLAM and Phoenix Group
Assuming the 90 days trading horizon SANLAM LTD RC 01 is expected to under-perform the Phoenix Group. But the stock apears to be less risky and, when comparing its historical volatility, SANLAM LTD RC 01 is 1.04 times less risky than Phoenix Group. The stock trades about -0.08 of its potential returns per unit of risk. The Phoenix Group Holdings is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 603.00 in Phoenix Group Holdings on October 25, 2024 and sell it today you would lose (11.00) from holding Phoenix Group Holdings or give up 1.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SANLAM LTD RC 01 vs. Phoenix Group Holdings
Performance |
| Timeline |
| SANLAM LTD RC |
| Phoenix Group Holdings |
SANLAM and Phoenix Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SANLAM and Phoenix Group
The main advantage of trading using opposite SANLAM and Phoenix Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SANLAM position performs unexpectedly, Phoenix Group 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 Phoenix Group will offset losses from the drop in Phoenix Group's long position.| SANLAM vs. REINET INVESTMENTS SCA | SANLAM vs. MidCap Financial Investment | SANLAM vs. Maple Leaf Foods | SANLAM vs. PennantPark Investment |
| Phoenix Group vs. SIERRA METALS | Phoenix Group vs. Forsys Metals Corp | Phoenix Group vs. Osisko Metals | Phoenix Group vs. Air Transport Services |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |