Correlation Between Moxian and Phoenix New

Can any of the company-specific risk be diversified away by investing in both Moxian and Phoenix New 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 Moxian and Phoenix New into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Moxian Inc and Phoenix New Media, you can compare the effects of market volatilities on Moxian and Phoenix New 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 Moxian with a short position of Phoenix New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moxian and Phoenix New.

Diversification Opportunities for Moxian and Phoenix New

-0.37

Correlation Coefficient

Moxian  Phoenix New

Very good diversification

The 3 months correlation between Moxian and Phoenix is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Moxian Inc and Phoenix New Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix New Media and Moxian 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 Moxian Inc are associated (or correlated) with Phoenix New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phoenix New Media has no effect on the direction of Moxian i.e., Moxian and Phoenix New go up and down completely randomly.

Pair Corralation between Moxian and Phoenix New

Given the investment horizon of 90 days Moxian Inc is expected to generate 1.19 times more return on investment than Phoenix New. However, Moxian is 1.19 times more volatile than Phoenix New Media. It trades about 0.03 of its potential returns per unit of risk. Phoenix New Media is currently generating about 0.03 per unit of risk. If you would invest  103.00  in Moxian Inc on January 24, 2024 and sell it today you would lose (2.00) from holding Moxian Inc or give up 1.94% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	43.24%
Values	Daily Returns

Moxian Inc  vs.  Phoenix New Media

Moxian Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Moxian Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Moxian is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Phoenix New Media

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Phoenix New Media are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, Phoenix New reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Moxian and Phoenix New

The main advantage of trading using opposite Moxian and Phoenix New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moxian position performs unexpectedly, Phoenix New 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 Phoenix New will offset losses from the drop in Phoenix New's long position.

The idea behind Moxian Inc and Phoenix New Media pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.