Correlation Between Ozon Holdings and Phonex

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

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

Diversification Opportunities for Ozon Holdings and Phonex

0.0

Correlation Coefficient

Ozon Holdings  Phonex

Pay attention - limited upside

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

Pair Corralation between Ozon Holdings and Phonex

If you would invest  117.00  in Phonex Inc on December 27, 2024 and sell it today you would earn a total of  6.00  from holding Phonex Inc or generate 5.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Ozon Holdings PLC  vs.  Phonex Inc

Ozon Holdings PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ozon Holdings PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Ozon Holdings is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Phonex Inc

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Phonex Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak technical indicators, Phonex demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ozon Holdings and Phonex

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

The idea behind Ozon Holdings PLC and Phonex Inc 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.