Correlation Between AUTOMATIC SYSTEMS and PHOENIX INVESTMENT

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

By analyzing existing cross correlation between AUTOMATIC SYSTEMS LTD and PHOENIX INVESTMENT PANY, you can compare the effects of market volatilities on AUTOMATIC SYSTEMS and PHOENIX INVESTMENT 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 AUTOMATIC SYSTEMS with a short position of PHOENIX INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUTOMATIC SYSTEMS and PHOENIX INVESTMENT.

Diversification Opportunities for AUTOMATIC SYSTEMS and PHOENIX INVESTMENT

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Correlation Coefficient

AUTOMATIC SYSTEMS  PHOENIX INVESTMENT

Pay attention - limited upside

The 3 months correlation between AUTOMATIC and PHOENIX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AUTOMATIC SYSTEMS LTD and PHOENIX INVESTMENT PANY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHOENIX INVESTMENT PANY and AUTOMATIC SYSTEMS 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 AUTOMATIC SYSTEMS LTD are associated (or correlated) with PHOENIX INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHOENIX INVESTMENT PANY has no effect on the direction of AUTOMATIC SYSTEMS i.e., AUTOMATIC SYSTEMS and PHOENIX INVESTMENT go up and down completely randomly.

Pair Corralation between AUTOMATIC SYSTEMS and PHOENIX INVESTMENT

If you would invest  31,300  in PHOENIX INVESTMENT PANY on October 7, 2024 and sell it today you would earn a total of  10,200  from holding PHOENIX INVESTMENT PANY or generate 32.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.41%
Values	Daily Returns

AUTOMATIC SYSTEMS LTD  vs.  PHOENIX INVESTMENT PANY

AUTOMATIC SYSTEMS LTD

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days AUTOMATIC SYSTEMS LTD has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy primary indicators, AUTOMATIC SYSTEMS is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

PHOENIX INVESTMENT PANY

Risk-Adjusted Performance

32 of 100

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in PHOENIX INVESTMENT PANY are ranked lower than 32 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical and fundamental indicators, PHOENIX INVESTMENT exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AUTOMATIC SYSTEMS and PHOENIX INVESTMENT

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

The idea behind AUTOMATIC SYSTEMS LTD and PHOENIX INVESTMENT PANY 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.