Correlation Between Phoenix Holdings and Brack Capit

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

By analyzing existing cross correlation between The Phoenix Holdings and Brack Capit N, you can compare the effects of market volatilities on Phoenix Holdings and Brack Capit 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 Holdings with a short position of Brack Capit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phoenix Holdings and Brack Capit.

Diversification Opportunities for Phoenix Holdings and Brack Capit

-0.73

Correlation Coefficient

Phoenix Holdings  Brack Capit

Pay attention - limited upside

The 3 months correlation between Phoenix and Brack is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding The Phoenix Holdings and Brack Capit N in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brack Capit N and Phoenix Holdings 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 The Phoenix Holdings are associated (or correlated) with Brack Capit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brack Capit N has no effect on the direction of Phoenix Holdings i.e., Phoenix Holdings and Brack Capit go up and down completely randomly.

Pair Corralation between Phoenix Holdings and Brack Capit

Assuming the 90 days trading horizon The Phoenix Holdings is expected to generate 0.22 times more return on investment than Brack Capit. However, The Phoenix Holdings is 4.51 times less risky than Brack Capit. It trades about 0.43 of its potential returns per unit of risk. Brack Capit N is currently generating about -0.13 per unit of risk. If you would invest  529,500  in The Phoenix Holdings on October 22, 2024 and sell it today you would earn a total of  60,500  from holding The Phoenix Holdings or generate 11.43% return on investment over 90 days.

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

The Phoenix Holdings  vs.  Brack Capit N

Phoenix Holdings

Risk-Adjusted Performance

40 of 100

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in The Phoenix Holdings are ranked lower than 40 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Phoenix Holdings sustained solid returns over the last few months and may actually be approaching a breakup point.

Brack Capit N

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Brack Capit N has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Phoenix Holdings and Brack Capit

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

The idea behind The Phoenix Holdings and Brack Capit N 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .