Correlation Between PHOENIX INVESTMENT and AFREXIMBANK

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

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

Diversification Opportunities for PHOENIX INVESTMENT and AFREXIMBANK

0.0

Correlation Coefficient

PHOENIX INVESTMENT  AFREXIMBANK

Pay attention - limited upside

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

Pair Corralation between PHOENIX INVESTMENT and AFREXIMBANK

If you would invest  33,700  in PHOENIX INVESTMENT PANY on October 7, 2024 and sell it today you would earn a total of  7,800  from holding PHOENIX INVESTMENT PANY or generate 23.15% return on investment over 90 days.

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

PHOENIX INVESTMENT PANY  vs.  AFREXIMBANK

PHOENIX INVESTMENT PANY

Risk-Adjusted Performance

32 of 100

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in PHOENIX INVESTMENT PANY are ranked lower than 32 (%) 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.

AFREXIMBANK

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with PHOENIX INVESTMENT and AFREXIMBANK

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

The idea behind PHOENIX INVESTMENT PANY and AFREXIMBANK 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.