Correlation Between PHOENIX INVESTMENT and CIM FINANCIAL
Can any of the company-specific risk be diversified away by investing in both PHOENIX INVESTMENT and CIM FINANCIAL 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 INVESTMENT and CIM FINANCIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PHOENIX INVESTMENT PANY and CIM FINANCIAL SERVICES, you can compare the effects of market volatilities on PHOENIX INVESTMENT and CIM FINANCIAL 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 INVESTMENT with a short position of CIM FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHOENIX INVESTMENT and CIM FINANCIAL.
Diversification Opportunities for PHOENIX INVESTMENT and CIM FINANCIAL
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PHOENIX and CIM is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding PHOENIX INVESTMENT PANY and CIM FINANCIAL SERVICES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIM FINANCIAL SERVICES and PHOENIX INVESTMENT 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 INVESTMENT PANY are associated (or correlated) with CIM FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIM FINANCIAL SERVICES has no effect on the direction of PHOENIX INVESTMENT i.e., PHOENIX INVESTMENT and CIM FINANCIAL go up and down completely randomly.
Pair Corralation between PHOENIX INVESTMENT and CIM FINANCIAL
Assuming the 90 days trading horizon PHOENIX INVESTMENT PANY is expected to generate 0.78 times more return on investment than CIM FINANCIAL. However, PHOENIX INVESTMENT PANY is 1.28 times less risky than CIM FINANCIAL. It trades about 0.29 of its potential returns per unit of risk. CIM FINANCIAL SERVICES is currently generating about -0.35 per unit of risk. If you would invest 35,000 in PHOENIX INVESTMENT PANY on August 31, 2024 and sell it today you would earn a total of 1,625 from holding PHOENIX INVESTMENT PANY or generate 4.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PHOENIX INVESTMENT PANY vs. CIM FINANCIAL SERVICES
Performance |
| Timeline |
| PHOENIX INVESTMENT PANY |
| CIM FINANCIAL SERVICES |
PHOENIX INVESTMENT and CIM FINANCIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PHOENIX INVESTMENT and CIM FINANCIAL
The main advantage of trading using opposite PHOENIX INVESTMENT and CIM FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHOENIX INVESTMENT position performs unexpectedly, CIM FINANCIAL 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 CIM FINANCIAL will offset losses from the drop in CIM FINANCIAL's long position.| PHOENIX INVESTMENT vs. AFRICA CLEAN ENERGY | PHOENIX INVESTMENT vs. LOTTOTECH LTD | PHOENIX INVESTMENT vs. AFREXIMBANK | PHOENIX INVESTMENT vs. HOTELEST LTD |
| CIM FINANCIAL vs. CAVELL TOURISTIC INVESTMENTS | CIM FINANCIAL vs. AFRICA CLEAN ENERGY | CIM FINANCIAL vs. AFREXIMBANK | CIM FINANCIAL vs. NATIONAL INVESTMENT TRUST |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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