Correlation Between TPG and Phenixfin
Can any of the company-specific risk be diversified away by investing in both TPG and Phenixfin 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 TPG and Phenixfin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TPG Inc and Phenixfin, you can compare the effects of market volatilities on TPG and Phenixfin 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 TPG with a short position of Phenixfin. Check out your portfolio center. Please also check ongoing floating volatility patterns of TPG and Phenixfin.
Diversification Opportunities for TPG and Phenixfin
Very good diversification
The 3 months correlation between TPG and Phenixfin is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding TPG Inc and Phenixfin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phenixfin and TPG 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 TPG Inc are associated (or correlated) with Phenixfin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phenixfin has no effect on the direction of TPG i.e., TPG and Phenixfin go up and down completely randomly.
Pair Corralation between TPG and Phenixfin
Considering the 90-day investment horizon TPG Inc is expected to generate 2.11 times more return on investment than Phenixfin. However, TPG is 2.11 times more volatile than Phenixfin. It trades about 0.13 of its potential returns per unit of risk. Phenixfin is currently generating about -0.08 per unit of risk. If you would invest 6,378 in TPG Inc on November 3, 2024 and sell it today you would earn a total of 347.00 from holding TPG Inc or generate 5.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TPG Inc vs. Phenixfin
Performance |
| Timeline |
| TPG Inc |
| Phenixfin |
TPG and Phenixfin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TPG and Phenixfin
The main advantage of trading using opposite TPG and Phenixfin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TPG position performs unexpectedly, Phenixfin 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 Phenixfin will offset losses from the drop in Phenixfin's long position.| TPG vs. Ares Management LP | TPG vs. Patria Investments | TPG vs. Apollo Global Management | TPG vs. Cion Investment Corp |
| Phenixfin vs. MFS Investment Grade | Phenixfin vs. Eaton Vance National | Phenixfin vs. Federated Premier Municipal | Phenixfin vs. Blackrock Muniholdings Ny |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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