Correlation Between PHOENIX BEVERAGES and NEW MAURITIUS
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By analyzing existing cross correlation between PHOENIX BEVERAGES LTD and NEW MAURITIUS HOTELS, you can compare the effects of market volatilities on PHOENIX BEVERAGES and NEW MAURITIUS 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 NEW MAURITIUS. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHOENIX BEVERAGES and NEW MAURITIUS.
Diversification Opportunities for PHOENIX BEVERAGES and NEW MAURITIUS
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PHOENIX and NEW is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding PHOENIX BEVERAGES LTD and NEW MAURITIUS HOTELS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEW MAURITIUS HOTELS 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 NEW MAURITIUS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEW MAURITIUS HOTELS has no effect on the direction of PHOENIX BEVERAGES i.e., PHOENIX BEVERAGES and NEW MAURITIUS go up and down completely randomly.
Pair Corralation between PHOENIX BEVERAGES and NEW MAURITIUS
Assuming the 90 days trading horizon PHOENIX BEVERAGES is expected to generate 2.02 times less return on investment than NEW MAURITIUS. But when comparing it to its historical volatility, PHOENIX BEVERAGES LTD is 3.56 times less risky than NEW MAURITIUS. It trades about 0.21 of its potential returns per unit of risk. NEW MAURITIUS HOTELS is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,095 in NEW MAURITIUS HOTELS on October 26, 2024 and sell it today you would earn a total of 255.00 from holding NEW MAURITIUS HOTELS or generate 23.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PHOENIX BEVERAGES LTD vs. NEW MAURITIUS HOTELS
Performance |
| Timeline |
| PHOENIX BEVERAGES LTD |
| NEW MAURITIUS HOTELS |
PHOENIX BEVERAGES and NEW MAURITIUS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PHOENIX BEVERAGES and NEW MAURITIUS
The main advantage of trading using opposite PHOENIX BEVERAGES and NEW MAURITIUS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHOENIX BEVERAGES position performs unexpectedly, NEW MAURITIUS 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 NEW MAURITIUS will offset losses from the drop in NEW MAURITIUS's long position.| PHOENIX BEVERAGES vs. QUALITY BEVERAGES LTD | PHOENIX BEVERAGES vs. PLASTIC INDUSTRY LTD | PHOENIX BEVERAGES vs. PSG FINANCIAL SERVICES | PHOENIX BEVERAGES vs. PHOENIX INVESTMENT PANY |
| NEW MAURITIUS vs. FINCORP INVESTMENT LTD | NEW MAURITIUS vs. UNIVERSAL PARTNERS LTD | NEW MAURITIUS vs. MCB GROUP LTD | NEW MAURITIUS vs. MUA LTD |
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 Stocks Directory module to find actively traded stocks across global markets.
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