Correlation Between PHI and Emera Maine
Can any of the company-specific risk be diversified away by investing in both PHI and Emera Maine 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 PHI and Emera Maine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PHI Group and Emera Maine PFD, you can compare the effects of market volatilities on PHI and Emera Maine 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 PHI with a short position of Emera Maine. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHI and Emera Maine.
Diversification Opportunities for PHI and Emera Maine
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PHI and Emera is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PHI Group and Emera Maine PFD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emera Maine PFD and PHI 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 PHI Group are associated (or correlated) with Emera Maine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emera Maine PFD has no effect on the direction of PHI i.e., PHI and Emera Maine go up and down completely randomly.
Pair Corralation between PHI and Emera Maine
If you would invest 0.02 in PHI Group on August 29, 2024 and sell it today you would lose (0.01) from holding PHI Group or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 2.38% |
| Values | Daily Returns |
PHI Group vs. Emera Maine PFD
Performance |
| Timeline |
| PHI Group |
| Emera Maine PFD |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PHI and Emera Maine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PHI and Emera Maine
The main advantage of trading using opposite PHI and Emera Maine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHI position performs unexpectedly, Emera Maine 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 Emera Maine will offset losses from the drop in Emera Maine's long position.The idea behind PHI Group and Emera Maine PFD pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Emera Maine vs. NetEase | Emera Maine vs. PennantPark Investment | Emera Maine vs. Ainsworth Game Technology | Emera Maine vs. Barrick Gold Corp |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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