Correlation Between PhenixFIN 525 and NewtekOne, 800
Can any of the company-specific risk be diversified away by investing in both PhenixFIN 525 and NewtekOne, 800 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 PhenixFIN 525 and NewtekOne, 800 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PhenixFIN 525 and NewtekOne, 800 percent, you can compare the effects of market volatilities on PhenixFIN 525 and NewtekOne, 800 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 PhenixFIN 525 with a short position of NewtekOne, 800. Check out your portfolio center. Please also check ongoing floating volatility patterns of PhenixFIN 525 and NewtekOne, 800.
Diversification Opportunities for PhenixFIN 525 and NewtekOne, 800
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PhenixFIN and NewtekOne, is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding PhenixFIN 525 and NewtekOne, 800 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NewtekOne, 800 percent and PhenixFIN 525 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 PhenixFIN 525 are associated (or correlated) with NewtekOne, 800. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NewtekOne, 800 percent has no effect on the direction of PhenixFIN 525 i.e., PhenixFIN 525 and NewtekOne, 800 go up and down completely randomly.
Pair Corralation between PhenixFIN 525 and NewtekOne, 800
Assuming the 90 days horizon PhenixFIN 525 is expected to generate 2.43 times less return on investment than NewtekOne, 800. But when comparing it to its historical volatility, PhenixFIN 525 is 2.67 times less risky than NewtekOne, 800. It trades about 0.08 of its potential returns per unit of risk. NewtekOne, 800 percent is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,485 in NewtekOne, 800 percent on August 30, 2024 and sell it today you would earn a total of 48.00 from holding NewtekOne, 800 percent or generate 1.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PhenixFIN 525 vs. NewtekOne, 800 percent
Performance |
| Timeline |
| PhenixFIN 525 |
| NewtekOne, 800 percent |
PhenixFIN 525 and NewtekOne, 800 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PhenixFIN 525 and NewtekOne, 800
The main advantage of trading using opposite PhenixFIN 525 and NewtekOne, 800 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PhenixFIN 525 position performs unexpectedly, NewtekOne, 800 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 NewtekOne, 800 will offset losses from the drop in NewtekOne, 800's long position.| PhenixFIN 525 vs. Oxford Square Capital | PhenixFIN 525 vs. Atlanticus Holdings | PhenixFIN 525 vs. Oxford Square Capital | PhenixFIN 525 vs. Oxford Lane Capital |
| NewtekOne, 800 vs. Meiwu Technology Co | NewtekOne, 800 vs. BBB Foods | NewtekOne, 800 vs. Kite Realty Group | NewtekOne, 800 vs. Eastman Kodak Co |
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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