Correlation Between Phoenix and EV Technology

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

By analyzing existing cross correlation between Phoenix Motor Common and EV Technology Group, you can compare the effects of market volatilities on Phoenix and EV Technology 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 Phoenix with a short position of EV Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phoenix and EV Technology.

Diversification Opportunities for Phoenix and EV Technology

0.0

Correlation Coefficient

Phoenix  EV Technology

Pay attention - limited upside

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

Pair Corralation between Phoenix and EV Technology

If you would invest  42.00  in Phoenix Motor Common on September 12, 2024 and sell it today you would lose (10.89) from holding Phoenix Motor Common or give up 25.93% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Phoenix Motor Common  vs.  EV Technology Group

Phoenix Motor Common

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Phoenix Motor Common are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical and fundamental indicators, Phoenix showed solid returns over the last few months and may actually be approaching a breakup point.

EV Technology Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days EV Technology Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, EV Technology is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Phoenix and EV Technology

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

The idea behind Phoenix Motor Common and EV Technology Group 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.

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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.