Correlation Between Crawford United and Phoenix Footwear

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

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

Diversification Opportunities for Crawford United and Phoenix Footwear

0.0

Correlation Coefficient

Crawford United  Phoenix Footwear

Pay attention - limited upside

The 3 months correlation between Crawford and Phoenix is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Crawford United and Phoenix Footwear Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix Footwear and Crawford United 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 Crawford United are associated (or correlated) with Phoenix Footwear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phoenix Footwear has no effect on the direction of Crawford United i.e., Crawford United and Phoenix Footwear go up and down completely randomly.

Pair Corralation between Crawford United and Phoenix Footwear

If you would invest (100.00) in Phoenix Footwear Group on December 30, 2024 and sell it today you would earn a total of  100.00  from holding Phoenix Footwear Group or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Crawford United  vs.  Phoenix Footwear Group

Crawford United

Risk-Adjusted Performance

Very Weak

Over the last 90 days Crawford United has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Crawford United is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Phoenix Footwear

Risk-Adjusted Performance

Very Weak

Over the last 90 days Phoenix Footwear Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Phoenix Footwear is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Crawford United and Phoenix Footwear

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

The idea behind Crawford United and Phoenix Footwear Group 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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.