Correlation Between PH Tech and MEDIANA CoLtd

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

By analyzing existing cross correlation between PH Tech Co and MEDIANA CoLtd, you can compare the effects of market volatilities on PH Tech and MEDIANA CoLtd 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 PH Tech with a short position of MEDIANA CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of PH Tech and MEDIANA CoLtd.

Diversification Opportunities for PH Tech and MEDIANA CoLtd

0.65

Correlation Coefficient

PH Tech  MEDIANA CoLtd

Poor diversification

The 3 months correlation between 239890 and MEDIANA is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding PH Tech Co and MEDIANA CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDIANA CoLtd and PH Tech 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 PH Tech Co are associated (or correlated) with MEDIANA CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDIANA CoLtd has no effect on the direction of PH Tech i.e., PH Tech and MEDIANA CoLtd go up and down completely randomly.

Pair Corralation between PH Tech and MEDIANA CoLtd

Assuming the 90 days trading horizon PH Tech Co is expected to under-perform the MEDIANA CoLtd. In addition to that, PH Tech is 1.27 times more volatile than MEDIANA CoLtd. It trades about -0.01 of its total potential returns per unit of risk. MEDIANA CoLtd is currently generating about 0.0 per unit of volatility. If you would invest  508,000  in MEDIANA CoLtd on October 8, 2024 and sell it today you would lose (17,000) from holding MEDIANA CoLtd or give up 3.35% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

PH Tech Co  vs.  MEDIANA CoLtd

PH Tech

Risk-Adjusted Performance

0 of 100

Very Weak

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

MEDIANA CoLtd

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with PH Tech and MEDIANA CoLtd

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

The idea behind PH Tech Co and MEDIANA CoLtd 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.