Correlation Between Phenixfin and National Waste

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

By analyzing existing cross correlation between Phenixfin and National Waste Management, you can compare the effects of market volatilities on Phenixfin and National Waste 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 Phenixfin with a short position of National Waste. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phenixfin and National Waste.

Diversification Opportunities for Phenixfin and National Waste

0.0

Correlation Coefficient

Phenixfin  National Waste

Pay attention - limited upside

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

Pair Corralation between Phenixfin and National Waste

If you would invest  4,725  in Phenixfin on October 7, 2024 and sell it today you would earn a total of  175.00  from holding Phenixfin or generate 3.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	97.56%
Values	Daily Returns

Phenixfin  vs.  National Waste Management

Phenixfin

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Phenixfin are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong technical and fundamental indicators, Phenixfin is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

National Waste Management

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days National Waste Management has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong primary indicators, National Waste is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Phenixfin and National Waste

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

The idea behind Phenixfin and National Waste Management 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..