Correlation Between PHOENIX BEVERAGES and AGAPE GLOBAL
Can any of the company-specific risk be diversified away by investing in both PHOENIX BEVERAGES and AGAPE GLOBAL 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 BEVERAGES and AGAPE GLOBAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PHOENIX BEVERAGES LTD and AGAPE GLOBAL INVESTMENTS, you can compare the effects of market volatilities on PHOENIX BEVERAGES and AGAPE GLOBAL 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 BEVERAGES with a short position of AGAPE GLOBAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHOENIX BEVERAGES and AGAPE GLOBAL.
Diversification Opportunities for PHOENIX BEVERAGES and AGAPE GLOBAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PHOENIX and AGAPE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PHOENIX BEVERAGES LTD and AGAPE GLOBAL INVESTMENTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGAPE GLOBAL INVESTMENTS and PHOENIX BEVERAGES 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 BEVERAGES LTD are associated (or correlated) with AGAPE GLOBAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGAPE GLOBAL INVESTMENTS has no effect on the direction of PHOENIX BEVERAGES i.e., PHOENIX BEVERAGES and AGAPE GLOBAL go up and down completely randomly.
Pair Corralation between PHOENIX BEVERAGES and AGAPE GLOBAL
Assuming the 90 days trading horizon PHOENIX BEVERAGES LTD is expected to generate 0.27 times more return on investment than AGAPE GLOBAL. However, PHOENIX BEVERAGES LTD is 3.67 times less risky than AGAPE GLOBAL. It trades about 0.1 of its potential returns per unit of risk. AGAPE GLOBAL INVESTMENTS is currently generating about -0.1 per unit of risk. If you would invest 49,600 in PHOENIX BEVERAGES LTD on August 27, 2024 and sell it today you would earn a total of 3,900 from holding PHOENIX BEVERAGES LTD or generate 7.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PHOENIX BEVERAGES LTD vs. AGAPE GLOBAL INVESTMENTS
Performance |
| Timeline |
| PHOENIX BEVERAGES LTD |
| AGAPE GLOBAL INVESTMENTS |
PHOENIX BEVERAGES and AGAPE GLOBAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PHOENIX BEVERAGES and AGAPE GLOBAL
The main advantage of trading using opposite PHOENIX BEVERAGES and AGAPE GLOBAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHOENIX BEVERAGES position performs unexpectedly, AGAPE GLOBAL 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 AGAPE GLOBAL will offset losses from the drop in AGAPE GLOBAL's long position.| PHOENIX BEVERAGES vs. MCB GROUP LTD | PHOENIX BEVERAGES vs. LOTTOTECH LTD | PHOENIX BEVERAGES vs. NEW MAURITIUS HOTELS | PHOENIX BEVERAGES vs. MIWA SUGAR LIMITED |
| AGAPE GLOBAL vs. MCB GROUP LTD | AGAPE GLOBAL vs. LOTTOTECH LTD | AGAPE GLOBAL vs. NEW MAURITIUS HOTELS | AGAPE GLOBAL vs. MIWA SUGAR LIMITED |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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