Correlation Between Phoenix and China Xuefeng
Can any of the company-specific risk be diversified away by investing in both Phoenix and China Xuefeng 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 and China Xuefeng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phoenix Motor Common and China Xuefeng Environmental, you can compare the effects of market volatilities on Phoenix and China Xuefeng 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 with a short position of China Xuefeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phoenix and China Xuefeng.
Diversification Opportunities for Phoenix and China Xuefeng
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Phoenix and China is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Phoenix Motor Common and China Xuefeng Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Xuefeng Enviro and Phoenix 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 Motor Common are associated (or correlated) with China Xuefeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Xuefeng Enviro has no effect on the direction of Phoenix i.e., Phoenix and China Xuefeng go up and down completely randomly.
Pair Corralation between Phoenix and China Xuefeng
Considering the 90-day investment horizon Phoenix is expected to generate 14.99 times less return on investment than China Xuefeng. But when comparing it to its historical volatility, Phoenix Motor Common is 2.15 times less risky than China Xuefeng. It trades about 0.01 of its potential returns per unit of risk. China Xuefeng Environmental is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 9.00 in China Xuefeng Environmental on November 2, 2024 and sell it today you would lose (7.20) from holding China Xuefeng Environmental or give up 80.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Phoenix Motor Common vs. China Xuefeng Environmental
Performance |
| Timeline |
| Phoenix Motor Common |
| China Xuefeng Enviro |
Phoenix and China Xuefeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phoenix and China Xuefeng
The main advantage of trading using opposite Phoenix and China Xuefeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phoenix position performs unexpectedly, China Xuefeng 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 China Xuefeng will offset losses from the drop in China Xuefeng's long position.| Phoenix vs. GreenPower Motor | Phoenix vs. Envirotech Vehicles | Phoenix vs. Volcon Inc | Phoenix vs. Zapp Electric Vehicles |
| China Xuefeng vs. Vaporbrands Intl | China Xuefeng vs. Faraday Future Intelligent | China Xuefeng vs. Aston Martin Lagonda | China Xuefeng vs. Polestar Automotive Holding |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |