Correlation Between Phenixfin and Logan Ridge
Can any of the company-specific risk be diversified away by investing in both Phenixfin and Logan Ridge 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 Logan Ridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phenixfin and Logan Ridge Finance, you can compare the effects of market volatilities on Phenixfin and Logan Ridge 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 Logan Ridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phenixfin and Logan Ridge.
Diversification Opportunities for Phenixfin and Logan Ridge
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Phenixfin and Logan is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Phenixfin and Logan Ridge Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logan Ridge Finance 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 Logan Ridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logan Ridge Finance has no effect on the direction of Phenixfin i.e., Phenixfin and Logan Ridge go up and down completely randomly.
Pair Corralation between Phenixfin and Logan Ridge
Considering the 90-day investment horizon Phenixfin is expected to under-perform the Logan Ridge. But the stock apears to be less risky and, when comparing its historical volatility, Phenixfin is 1.62 times less risky than Logan Ridge. The stock trades about -0.01 of its potential returns per unit of risk. The Logan Ridge Finance is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,762 in Logan Ridge Finance on May 2, 2025 and sell it today you would earn a total of 146.00 from holding Logan Ridge Finance or generate 8.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.08% |
| Values | Daily Returns |
Phenixfin vs. Logan Ridge Finance
Performance |
| Timeline |
| Phenixfin |
| Logan Ridge Finance |
Risk-Adjusted Performance
Modest
Weak | Strong |
Phenixfin and Logan Ridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phenixfin and Logan Ridge
The main advantage of trading using opposite Phenixfin and Logan Ridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phenixfin position performs unexpectedly, Logan Ridge 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 Logan Ridge will offset losses from the drop in Logan Ridge's long position.| Phenixfin vs. MFS Investment Grade | Phenixfin vs. Eaton Vance National | Phenixfin vs. National Research Corp | Phenixfin vs. Portman Ridge Finance |
| Logan Ridge vs. MFS Investment Grade | Logan Ridge vs. Investcorp Credit Management | Logan Ridge vs. Nuveen California Select | Logan Ridge vs. Phenixfin |
Check out your portfolio center.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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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