Correlation Between Power Financial and PHN Multi
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By analyzing existing cross correlation between Power Financial Corp and PHN Multi Style All Cap, you can compare the effects of market volatilities on Power Financial and PHN Multi 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 Power Financial with a short position of PHN Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Power Financial and PHN Multi.
Diversification Opportunities for Power Financial and PHN Multi
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Power and PHN is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Power Financial Corp and PHN Multi Style All Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHN Multi Style and Power Financial 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 Power Financial Corp are associated (or correlated) with PHN Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHN Multi Style has no effect on the direction of Power Financial i.e., Power Financial and PHN Multi go up and down completely randomly.
Pair Corralation between Power Financial and PHN Multi
Assuming the 90 days trading horizon Power Financial is expected to generate 1.62 times less return on investment than PHN Multi. In addition to that, Power Financial is 1.69 times more volatile than PHN Multi Style All Cap. It trades about 0.1 of its total potential returns per unit of risk. PHN Multi Style All Cap is currently generating about 0.28 per unit of volatility. If you would invest 2,598 in PHN Multi Style All Cap on September 12, 2024 and sell it today you would earn a total of 332.00 from holding PHN Multi Style All Cap or generate 12.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Power Financial Corp vs. PHN Multi Style All Cap
Performance |
| Timeline |
| Power Financial Corp |
| PHN Multi Style |
Power Financial and PHN Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Power Financial and PHN Multi
The main advantage of trading using opposite Power Financial and PHN Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Power Financial position performs unexpectedly, PHN Multi 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 PHN Multi will offset losses from the drop in PHN Multi's long position.| Power Financial vs. Data Communications Management | Power Financial vs. Leons Furniture Limited | Power Financial vs. Eddy Smart Home | Power Financial vs. MTY Food Group |
| PHN Multi vs. Fidelity Tactical High | PHN Multi vs. Fidelity ClearPath 2045 | PHN Multi vs. Bloom Select Income | PHN Multi vs. Mackenzie Ivy European |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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