Correlation Between Phonex and Just Eat

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

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

Diversification Opportunities for Phonex and Just Eat

0.45

Correlation Coefficient

Phonex  Just Eat

Very weak diversification

The 3 months correlation between Phonex and Just is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Phonex Inc and Just Eat Takeaway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Just Eat Takeaway and Phonex 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 Phonex Inc are associated (or correlated) with Just Eat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Just Eat Takeaway has no effect on the direction of Phonex i.e., Phonex and Just Eat go up and down completely randomly.

Pair Corralation between Phonex and Just Eat

If you would invest  107.00  in Phonex Inc on September 2, 2024 and sell it today you would earn a total of  3.00  from holding Phonex Inc or generate 2.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.56%
Values	Daily Returns

Phonex Inc  vs.  Just Eat Takeaway

Phonex Inc

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Phonex Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong technical indicators, Phonex is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Just Eat Takeaway

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Just Eat Takeaway has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Just Eat is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Phonex and Just Eat

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

The idea behind Phonex Inc and Just Eat Takeaway 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.