Correlation Between Mawer Global and PHN Multi

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

By analyzing existing cross correlation between Mawer Global Small and PHN Multi Style All Cap, you can compare the effects of market volatilities on Mawer Global 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 Mawer Global with a short position of PHN Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mawer Global and PHN Multi.

Diversification Opportunities for Mawer Global and PHN Multi

-0.01

Correlation Coefficient

Mawer Global  PHN Multi

Good diversification

The 3 months correlation between Mawer and PHN is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Mawer Global Small 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 Mawer Global 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 Mawer Global Small 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 Mawer Global i.e., Mawer Global and PHN Multi go up and down completely randomly.

Pair Corralation between Mawer Global and PHN Multi

Assuming the 90 days trading horizon Mawer Global Small is expected to under-perform the PHN Multi. But the fund apears to be less risky and, when comparing its historical volatility, Mawer Global Small is 1.43 times less risky than PHN Multi. The fund trades about -0.02 of its potential returns per unit of risk. The PHN Multi Style All Cap is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  2,177  in PHN Multi Style All Cap on October 7, 2024 and sell it today you would earn a total of  406.00  from holding PHN Multi Style All Cap or generate 18.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.6%
Values	Daily Returns

Mawer Global Small  vs.  PHN Multi Style All Cap

Mawer Global Small

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mawer Global Small has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong basic indicators, Mawer Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

PHN Multi Style

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PHN Multi Style All Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of very healthy basic indicators, PHN Multi is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Mawer Global and PHN Multi

The main advantage of trading using opposite Mawer Global and PHN Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mawer Global 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.

The idea behind Mawer Global Small and PHN Multi Style All Cap 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.