Correlation Between Summa Silver and PHN Multi

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

By analyzing existing cross correlation between Summa Silver Corp and PHN Multi Style All Cap, you can compare the effects of market volatilities on Summa Silver and PHN Multi 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 Summa Silver with a short position of PHN Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summa Silver and PHN Multi.

Diversification Opportunities for Summa Silver and PHN Multi

-0.42

Correlation Coefficient

Summa Silver  PHN Multi

Very good diversification

The 3 months correlation between Summa and PHN is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Summa Silver Corp and PHN Multi Style All Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHN Multi Style and Summa Silver 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 Summa Silver Corp are associated (or correlated) with PHN Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHN Multi Style has no effect on the direction of Summa Silver i.e., Summa Silver and PHN Multi go up and down completely randomly.

Pair Corralation between Summa Silver and PHN Multi

Assuming the 90 days trading horizon Summa Silver Corp is expected to under-perform the PHN Multi. In addition to that, Summa Silver is 4.91 times more volatile than PHN Multi Style All Cap. It trades about -0.03 of its total potential returns per unit of risk. PHN Multi Style All Cap is currently generating about 0.07 per unit of volatility. If you would invest  1,930  in PHN Multi Style All Cap on October 8, 2024 and sell it today you would earn a total of  653.00  from holding PHN Multi Style All Cap or generate 33.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	99.8%
Values	Daily Returns

Summa Silver Corp  vs.  PHN Multi Style All Cap

Summa Silver Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Summa Silver Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

PHN Multi Style

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PHN Multi Style All Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of very healthy basic indicators, PHN Multi is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Summa Silver and PHN Multi

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

The idea behind Summa Silver Corp and PHN Multi Style All Cap 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.