Correlation Between Pheton Holdings and AdvanceTC

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

By analyzing existing cross correlation between Pheton Holdings Ltd and AdvanceTC Limited, you can compare the effects of market volatilities on Pheton Holdings and AdvanceTC 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 Pheton Holdings with a short position of AdvanceTC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pheton Holdings and AdvanceTC.

Diversification Opportunities for Pheton Holdings and AdvanceTC

-0.65

Correlation Coefficient

Pheton Holdings  AdvanceTC

Excellent diversification

The 3 months correlation between Pheton and AdvanceTC is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Pheton Holdings Ltd and AdvanceTC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdvanceTC Limited and Pheton 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 Pheton Holdings Ltd are associated (or correlated) with AdvanceTC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdvanceTC Limited has no effect on the direction of Pheton Holdings i.e., Pheton Holdings and AdvanceTC go up and down completely randomly.

Pair Corralation between Pheton Holdings and AdvanceTC

Given the investment horizon of 90 days Pheton Holdings Ltd is expected to generate 2.13 times more return on investment than AdvanceTC. However, Pheton Holdings is 2.13 times more volatile than AdvanceTC Limited. It trades about 0.09 of its potential returns per unit of risk. AdvanceTC Limited is currently generating about -0.11 per unit of risk. If you would invest  376.00  in Pheton Holdings Ltd on May 3, 2025 and sell it today you would lose (287.00) from holding Pheton Holdings Ltd or give up 76.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	96.83%
Values	Daily Returns

Pheton Holdings Ltd  vs.  AdvanceTC Limited

Pheton Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Pheton Holdings Ltd are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite weak technical indicators, Pheton Holdings disclosed solid returns over the last few months and may actually be approaching a breakup point.

AdvanceTC Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days AdvanceTC Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's essential indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Pheton Holdings and AdvanceTC

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

The idea behind Pheton Holdings Ltd and AdvanceTC Limited 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.