Correlation Between MOVIE GAMES and Phillips

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

By analyzing existing cross correlation between MOVIE GAMES SA and Phillips 66, you can compare the effects of market volatilities on MOVIE GAMES and Phillips 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 MOVIE GAMES with a short position of Phillips. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOVIE GAMES and Phillips.

Diversification Opportunities for MOVIE GAMES and Phillips

-0.45

Correlation Coefficient

MOVIE GAMES  Phillips

Very good diversification

The 3 months correlation between MOVIE and Phillips is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding MOVIE GAMES SA and Phillips 66 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phillips 66 and MOVIE GAMES 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 MOVIE GAMES SA are associated (or correlated) with Phillips. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phillips 66 has no effect on the direction of MOVIE GAMES i.e., MOVIE GAMES and Phillips go up and down completely randomly.

Pair Corralation between MOVIE GAMES and Phillips

Assuming the 90 days horizon MOVIE GAMES SA is expected to under-perform the Phillips. In addition to that, MOVIE GAMES is 1.11 times more volatile than Phillips 66. It trades about -0.33 of its total potential returns per unit of risk. Phillips 66 is currently generating about 0.05 per unit of volatility. If you would invest  11,302  in Phillips 66 on September 15, 2024 and sell it today you would earn a total of  566.00  from holding Phillips 66 or generate 5.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

MOVIE GAMES SA  vs.  Phillips 66

MOVIE GAMES SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MOVIE GAMES SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Phillips 66

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Phillips 66 are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Phillips is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with MOVIE GAMES and Phillips

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

The idea behind MOVIE GAMES SA and Phillips 66 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.