Correlation Between Phoenix and Stellantis
Can any of the company-specific risk be diversified away by investing in both Phoenix and Stellantis 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 Stellantis 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 Stellantis NV, you can compare the effects of market volatilities on Phoenix and Stellantis 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 Stellantis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phoenix and Stellantis.
Diversification Opportunities for Phoenix and Stellantis
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Phoenix and Stellantis is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Phoenix Motor Common and Stellantis NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stellantis NV 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 Stellantis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stellantis NV has no effect on the direction of Phoenix i.e., Phoenix and Stellantis go up and down completely randomly.
Pair Corralation between Phoenix and Stellantis
Considering the 90-day investment horizon Phoenix Motor Common is expected to generate 7.03 times more return on investment than Stellantis. However, Phoenix is 7.03 times more volatile than Stellantis NV. It trades about 0.0 of its potential returns per unit of risk. Stellantis NV is currently generating about -0.08 per unit of risk. If you would invest 137.00 in Phoenix Motor Common on September 2, 2024 and sell it today you would lose (103.00) from holding Phoenix Motor Common or give up 75.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Phoenix Motor Common vs. Stellantis NV
Performance |
| Timeline |
| Phoenix Motor Common |
| Stellantis NV |
Phoenix and Stellantis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phoenix and Stellantis
The main advantage of trading using opposite Phoenix and Stellantis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phoenix position performs unexpectedly, Stellantis 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 Stellantis will offset losses from the drop in Stellantis' long position.| Phoenix vs. GreenPower Motor | Phoenix vs. Envirotech Vehicles | Phoenix vs. Volcon Inc | Phoenix vs. Zapp Electric Vehicles |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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