Correlation Between Bloom Select and PHN Canadian
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By analyzing existing cross correlation between Bloom Select Income and PHN Canadian Equity, you can compare the effects of market volatilities on Bloom Select and PHN Canadian 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 Bloom Select with a short position of PHN Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloom Select and PHN Canadian.
Diversification Opportunities for Bloom Select and PHN Canadian
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bloom and PHN is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Bloom Select Income and PHN Canadian Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHN Canadian Equity and Bloom Select 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 Bloom Select Income are associated (or correlated) with PHN Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHN Canadian Equity has no effect on the direction of Bloom Select i.e., Bloom Select and PHN Canadian go up and down completely randomly.
Pair Corralation between Bloom Select and PHN Canadian
Assuming the 90 days trading horizon Bloom Select is expected to generate 2.46 times less return on investment than PHN Canadian. In addition to that, Bloom Select is 3.04 times more volatile than PHN Canadian Equity. It trades about 0.04 of its total potential returns per unit of risk. PHN Canadian Equity is currently generating about 0.34 per unit of volatility. If you would invest 2,092 in PHN Canadian Equity on September 12, 2024 and sell it today you would earn a total of 198.00 from holding PHN Canadian Equity or generate 9.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Bloom Select Income vs. PHN Canadian Equity
Performance |
Timeline |
Bloom Select Income |
PHN Canadian Equity |
Bloom Select and PHN Canadian Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bloom Select and PHN Canadian
The main advantage of trading using opposite Bloom Select and PHN Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloom Select position performs unexpectedly, PHN Canadian 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 Canadian will offset losses from the drop in PHN Canadian's long position.Bloom Select vs. Canadian High Income | Bloom Select vs. Blue Ribbon Income | Bloom Select vs. Energy Income | Bloom Select vs. Australian REIT Income |
PHN Canadian vs. RBC Canadian Equity | PHN Canadian vs. BMO Aggregate Bond | PHN Canadian vs. iShares Canadian HYBrid | PHN Canadian vs. Brompton European Dividend |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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