Correlation Between PHN Multi and Lundin Gold
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By analyzing existing cross correlation between PHN Multi Style All Cap and Lundin Gold, you can compare the effects of market volatilities on PHN Multi and Lundin Gold 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 Lundin Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHN Multi and Lundin Gold.
Diversification Opportunities for PHN Multi and Lundin Gold
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PHN and Lundin is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding PHN Multi Style All Cap and Lundin Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lundin Gold 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 Lundin Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lundin Gold has no effect on the direction of PHN Multi i.e., PHN Multi and Lundin Gold go up and down completely randomly.
Pair Corralation between PHN Multi and Lundin Gold
Assuming the 90 days trading horizon PHN Multi Style All Cap is expected to under-perform the Lundin Gold. But the fund apears to be less risky and, when comparing its historical volatility, PHN Multi Style All Cap is 1.41 times less risky than Lundin Gold. The fund trades about -0.02 of its potential returns per unit of risk. The Lundin Gold is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,090 in Lundin Gold on October 5, 2024 and sell it today you would earn a total of 107.00 from holding Lundin Gold or generate 3.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.36% |
Values | Daily Returns |
PHN Multi Style All Cap vs. Lundin Gold
Performance |
Timeline |
PHN Multi Style |
Lundin Gold |
PHN Multi and Lundin Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PHN Multi and Lundin Gold
The main advantage of trading using opposite PHN Multi and Lundin Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHN Multi position performs unexpectedly, Lundin Gold 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 Lundin Gold will offset losses from the drop in Lundin Gold's long position.PHN Multi vs. PHN Canadian Equity | PHN Multi vs. Fidelity Tactical High | PHN Multi vs. Fidelity ClearPath 2045 | PHN Multi vs. Mackenzie Ivy European |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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