Correlation Between PHN Multi and Brompton European
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By analyzing existing cross correlation between PHN Multi Style All Cap and Brompton European Dividend, you can compare the effects of market volatilities on PHN Multi and Brompton European 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 PHN Multi with a short position of Brompton European. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHN Multi and Brompton European.
Diversification Opportunities for PHN Multi and Brompton European
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between PHN and Brompton is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding PHN Multi Style All Cap and Brompton European Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brompton European and PHN Multi 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 PHN Multi Style All Cap are associated (or correlated) with Brompton European. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brompton European has no effect on the direction of PHN Multi i.e., PHN Multi and Brompton European go up and down completely randomly.
Pair Corralation between PHN Multi and Brompton European
Assuming the 90 days trading horizon PHN Multi Style All Cap is expected to generate 0.32 times more return on investment than Brompton European. However, PHN Multi Style All Cap is 3.11 times less risky than Brompton European. It trades about 0.35 of its potential returns per unit of risk. Brompton European Dividend is currently generating about -0.07 per unit of risk. If you would invest 2,502 in PHN Multi Style All Cap on March 20, 2024 and sell it today you would earn a total of 68.00 from holding PHN Multi Style All Cap or generate 2.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 88.24% |
Values | Daily Returns |
PHN Multi Style All Cap vs. Brompton European Dividend
Performance |
Timeline |
PHN Multi Style |
Brompton European |
PHN Multi and Brompton European Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PHN Multi and Brompton European
The main advantage of trading using opposite PHN Multi and Brompton European positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHN Multi position performs unexpectedly, Brompton European 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 Brompton European will offset losses from the drop in Brompton European's long position.PHN Multi vs. Mawer Equity A | PHN Multi vs. Solar Alliance Energy | PHN Multi vs. EcoSynthetix | PHN Multi vs. Tarku Resources |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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