Correlation Between NEW MAURITIUS and PHOENIX INVESTMENT

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

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

Diversification Opportunities for NEW MAURITIUS and PHOENIX INVESTMENT

-0.39

Correlation Coefficient

NEW MAURITIUS  PHOENIX INVESTMENT

Very good diversification

The 3 months correlation between NEW and PHOENIX is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding NEW MAURITIUS HOTELS 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 NEW MAURITIUS 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 NEW MAURITIUS HOTELS 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 NEW MAURITIUS i.e., NEW MAURITIUS and PHOENIX INVESTMENT go up and down completely randomly.

Pair Corralation between NEW MAURITIUS and PHOENIX INVESTMENT

Assuming the 90 days trading horizon NEW MAURITIUS HOTELS is expected to generate 3.73 times more return on investment than PHOENIX INVESTMENT. However, NEW MAURITIUS is 3.73 times more volatile than PHOENIX INVESTMENT PANY. It trades about 0.05 of its potential returns per unit of risk. PHOENIX INVESTMENT PANY is currently generating about 0.15 per unit of risk. If you would invest  960.00  in NEW MAURITIUS HOTELS on December 5, 2024 and sell it today you would earn a total of  440.00  from holding NEW MAURITIUS HOTELS or generate 45.83% return on investment over 90 days.

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

NEW MAURITIUS HOTELS  vs.  PHOENIX INVESTMENT PANY

NEW MAURITIUS HOTELS

Risk-Adjusted Performance

Very Weak

Over the last 90 days NEW MAURITIUS HOTELS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong essential indicators, NEW MAURITIUS is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

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 NEW MAURITIUS and PHOENIX INVESTMENT

The main advantage of trading using opposite NEW MAURITIUS and PHOENIX INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEW MAURITIUS 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 NEW MAURITIUS HOTELS 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.