Correlation Between LIVESTOCK FEED and PHOENIX INVESTMENT

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

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

Diversification Opportunities for LIVESTOCK FEED and PHOENIX INVESTMENT

0.16

Correlation Coefficient

LIVESTOCK FEED  PHOENIX INVESTMENT

Average diversification

The 3 months correlation between LIVESTOCK and PHOENIX is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding LIVESTOCK FEED 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 LIVESTOCK FEED 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 LIVESTOCK FEED 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 LIVESTOCK FEED i.e., LIVESTOCK FEED and PHOENIX INVESTMENT go up and down completely randomly.

Pair Corralation between LIVESTOCK FEED and PHOENIX INVESTMENT

Assuming the 90 days trading horizon LIVESTOCK FEED is expected to generate 2.91 times less return on investment than PHOENIX INVESTMENT. But when comparing it to its historical volatility, LIVESTOCK FEED LTD is 1.83 times less risky than PHOENIX INVESTMENT. It trades about 0.26 of its potential returns per unit of risk. PHOENIX INVESTMENT PANY is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest  37,000  in PHOENIX INVESTMENT PANY on September 25, 2024 and sell it today you would earn a total of  3,900  from holding PHOENIX INVESTMENT PANY or generate 10.54% return on investment over 90 days.

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

LIVESTOCK FEED LTD  vs.  PHOENIX INVESTMENT PANY

LIVESTOCK FEED LTD

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in LIVESTOCK FEED LTD are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable essential indicators, LIVESTOCK FEED is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

PHOENIX INVESTMENT PANY

Risk-Adjusted Performance

30 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in PHOENIX INVESTMENT PANY are ranked lower than 30 (%) 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 LIVESTOCK FEED and PHOENIX INVESTMENT

The main advantage of trading using opposite LIVESTOCK FEED and PHOENIX INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LIVESTOCK FEED 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 LIVESTOCK FEED 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.