Correlation Between Phoenix Global and Ion Beam

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

By analyzing existing cross correlation between Phoenix Global Mining and Ion Beam Applications, you can compare the effects of market volatilities on Phoenix Global and Ion Beam 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 Phoenix Global with a short position of Ion Beam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phoenix Global and Ion Beam.

Diversification Opportunities for Phoenix Global and Ion Beam

-0.09

Correlation Coefficient

Phoenix Global  Ion Beam

Good diversification

The 3 months correlation between Phoenix and Ion is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Phoenix Global Mining and Ion Beam Applications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ion Beam Applications and Phoenix Global 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 Phoenix Global Mining are associated (or correlated) with Ion Beam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ion Beam Applications has no effect on the direction of Phoenix Global i.e., Phoenix Global and Ion Beam go up and down completely randomly.

Pair Corralation between Phoenix Global and Ion Beam

Assuming the 90 days trading horizon Phoenix Global Mining is expected to under-perform the Ion Beam. In addition to that, Phoenix Global is 3.62 times more volatile than Ion Beam Applications. It trades about -0.04 of its total potential returns per unit of risk. Ion Beam Applications is currently generating about -0.07 per unit of volatility. If you would invest  1,331  in Ion Beam Applications on December 21, 2024 and sell it today you would lose (125.00) from holding Ion Beam Applications or give up 9.39% of portfolio value over 90 days.

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

Phoenix Global Mining  vs.  Ion Beam Applications

Phoenix Global Mining

Risk-Adjusted Performance

Very Weak

Over the last 90 days Phoenix Global Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Ion Beam Applications

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ion Beam Applications has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Phoenix Global and Ion Beam

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

The idea behind Phoenix Global Mining and Ion Beam Applications 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.