Correlation Between PHENIXFIN CORP and Gaming

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

By analyzing existing cross correlation between PHENIXFIN P DL and Gaming and Leisure, you can compare the effects of market volatilities on PHENIXFIN CORP and Gaming 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 PHENIXFIN CORP with a short position of Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHENIXFIN CORP and Gaming.

Diversification Opportunities for PHENIXFIN CORP and Gaming

0.38

Correlation Coefficient

PHENIXFIN CORP  Gaming

Weak diversification

The 3 months correlation between PHENIXFIN and Gaming is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding PHENIXFIN P DL and Gaming and Leisure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaming and Leisure and PHENIXFIN CORP 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 PHENIXFIN P DL are associated (or correlated) with Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaming and Leisure has no effect on the direction of PHENIXFIN CORP i.e., PHENIXFIN CORP and Gaming go up and down completely randomly.

Pair Corralation between PHENIXFIN CORP and Gaming

Assuming the 90 days horizon PHENIXFIN P DL is expected to generate 1.1 times more return on investment than Gaming. However, PHENIXFIN CORP is 1.1 times more volatile than Gaming and Leisure. It trades about 0.07 of its potential returns per unit of risk. Gaming and Leisure is currently generating about 0.05 per unit of risk. If you would invest  4,542  in PHENIXFIN P DL on December 21, 2024 and sell it today you would earn a total of  278.00  from holding PHENIXFIN P DL or generate 6.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

PHENIXFIN P DL  vs.  Gaming and Leisure

PHENIXFIN P DL

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in PHENIXFIN P DL are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, PHENIXFIN CORP may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Gaming and Leisure

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Gaming and Leisure are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Gaming is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with PHENIXFIN CORP and Gaming

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

The idea behind PHENIXFIN P DL and Gaming and Leisure 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.