Correlation Between PHI and ThreeD Capital

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

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

Diversification Opportunities for PHI and ThreeD Capital

0.25

Correlation Coefficient

PHI  ThreeD Capital

Modest diversification

The 3 months correlation between PHI and ThreeD is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding PHI Group and ThreeD Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ThreeD Capital and PHI 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 PHI Group are associated (or correlated) with ThreeD Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ThreeD Capital has no effect on the direction of PHI i.e., PHI and ThreeD Capital go up and down completely randomly.

Pair Corralation between PHI and ThreeD Capital

Given the investment horizon of 90 days PHI Group is expected to generate 5.55 times more return on investment than ThreeD Capital. However, PHI is 5.55 times more volatile than ThreeD Capital. It trades about 0.17 of its potential returns per unit of risk. ThreeD Capital is currently generating about 0.1 per unit of risk. If you would invest  0.01  in PHI Group on August 12, 2025 and sell it today you would earn a total of  0.00  from holding PHI Group or generate 0.0% return on investment over 90 days.

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

PHI Group  vs.  ThreeD Capital

PHI Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in PHI Group are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite quite weak forward indicators, PHI disclosed solid returns over the last few months and may actually be approaching a breakup point.

ThreeD Capital

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in ThreeD Capital are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady technical and fundamental indicators, ThreeD Capital reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PHI and ThreeD Capital

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

The idea behind PHI Group and ThreeD Capital 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 Global Correlations module to find global opportunities by holding instruments from different markets.