Correlation Between Phoenix Footwear and Table Trac

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

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

Diversification Opportunities for Phoenix Footwear and Table Trac

-0.1

Correlation Coefficient

Phoenix Footwear  Table Trac

Good diversification

The 3 months correlation between Phoenix and Table is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Phoenix Footwear Group and Table Trac in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Table Trac and Phoenix Footwear 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 Footwear Group are associated (or correlated) with Table Trac. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Table Trac has no effect on the direction of Phoenix Footwear i.e., Phoenix Footwear and Table Trac go up and down completely randomly.

Pair Corralation between Phoenix Footwear and Table Trac

If you would invest  16.00  in Phoenix Footwear Group on October 11, 2024 and sell it today you would earn a total of  0.00  from holding Phoenix Footwear Group or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Phoenix Footwear Group  vs.  Table Trac

Phoenix Footwear

Risk-Adjusted Performance

0 of 100

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.

Table Trac

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Table Trac has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Phoenix Footwear and Table Trac

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

The idea behind Phoenix Footwear Group and Table Trac 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.