Correlation Between Maple Leaf and PHN Multi
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By analyzing existing cross correlation between Maple Leaf Foods and PHN Multi Style All Cap, you can compare the effects of market volatilities on Maple Leaf 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 Maple Leaf with a short position of PHN Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maple Leaf and PHN Multi.
Diversification Opportunities for Maple Leaf and PHN Multi
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Maple and PHN is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Maple Leaf Foods 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 Maple Leaf 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 Maple Leaf Foods 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 Maple Leaf i.e., Maple Leaf and PHN Multi go up and down completely randomly.
Pair Corralation between Maple Leaf and PHN Multi
Assuming the 90 days trading horizon Maple Leaf is expected to generate 2.41 times less return on investment than PHN Multi. In addition to that, Maple Leaf is 2.15 times more volatile than PHN Multi Style All Cap. It trades about 0.05 of its total potential returns per unit of risk. PHN Multi Style All Cap is currently generating about 0.24 per unit of volatility. If you would invest 2,572 in PHN Multi Style All Cap on September 2, 2024 and sell it today you would earn a total of 288.00 from holding PHN Multi Style All Cap or generate 11.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Maple Leaf Foods vs. PHN Multi Style All Cap
Performance |
| Timeline |
| Maple Leaf Foods |
| PHN Multi Style |
Maple Leaf and PHN Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maple Leaf and PHN Multi
The main advantage of trading using opposite Maple Leaf and PHN Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maple Leaf 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.| Maple Leaf vs. Saputo Inc | Maple Leaf vs. George Weston Limited | Maple Leaf vs. Empire Company Limited | Maple Leaf vs. Premium Brands Holdings |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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