Correlation Between Via Optronics and Phenixfin
Can any of the company-specific risk be diversified away by investing in both Via Optronics 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 Via Optronics and Phenixfin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Via Optronics Ag and Phenixfin, you can compare the effects of market volatilities on Via Optronics 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 Via Optronics with a short position of Phenixfin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Via Optronics and Phenixfin.
Diversification Opportunities for Via Optronics and Phenixfin
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Via and Phenixfin is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Via Optronics Ag and Phenixfin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phenixfin and Via Optronics 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 Via Optronics Ag 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 Via Optronics i.e., Via Optronics and Phenixfin go up and down completely randomly.
Pair Corralation between Via Optronics and Phenixfin
If you would invest 15.00 in Via Optronics Ag on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Via Optronics Ag or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Via Optronics Ag vs. Phenixfin
Performance |
| Timeline |
| Via Optronics Ag |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Phenixfin |
Via Optronics and Phenixfin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Via Optronics and Phenixfin
The main advantage of trading using opposite Via Optronics and Phenixfin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Via Optronics 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.| Via Optronics vs. Benchmark Electronics | Via Optronics vs. Bel Fuse A | Via Optronics vs. Methode Electronics | Via Optronics vs. Bel Fuse B |
| Phenixfin vs. Visa Class A | Phenixfin vs. Diamond Hill Investment | Phenixfin vs. Distoken Acquisition | Phenixfin vs. AllianceBernstein Holding LP |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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