Correlation Between LOTTOTECH and PHOENIX INVESTMENT

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

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

Diversification Opportunities for LOTTOTECH and PHOENIX INVESTMENT

-0.14

Correlation Coefficient

LOTTOTECH  PHOENIX INVESTMENT

Good diversification

The 3 months correlation between LOTTOTECH and PHOENIX is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding LOTTOTECH 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 LOTTOTECH 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 LOTTOTECH 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 LOTTOTECH i.e., LOTTOTECH and PHOENIX INVESTMENT go up and down completely randomly.

Pair Corralation between LOTTOTECH and PHOENIX INVESTMENT

Assuming the 90 days trading horizon LOTTOTECH LTD is expected to under-perform the PHOENIX INVESTMENT. In addition to that, LOTTOTECH is 1.23 times more volatile than PHOENIX INVESTMENT PANY. It trades about -0.01 of its total potential returns per unit of risk. PHOENIX INVESTMENT PANY is currently generating about 0.35 per unit of volatility. If you would invest  36,625  in PHOENIX INVESTMENT PANY on December 4, 2024 and sell it today you would earn a total of  6,900  from holding PHOENIX INVESTMENT PANY or generate 18.84% return on investment over 90 days.

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

LOTTOTECH LTD  vs.  PHOENIX INVESTMENT PANY

LOTTOTECH LTD

Risk-Adjusted Performance

Very Weak

Over the last 90 days LOTTOTECH LTD has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, LOTTOTECH is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

PHOENIX INVESTMENT PANY

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in PHOENIX INVESTMENT PANY are ranked lower than 27 (%) 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 LOTTOTECH and PHOENIX INVESTMENT

The main advantage of trading using opposite LOTTOTECH and PHOENIX INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LOTTOTECH 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 LOTTOTECH 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.