Correlation Between Table Trac and Phoenix Footwear

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

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

Diversification Opportunities for Table Trac and Phoenix Footwear

0.0

Correlation Coefficient

Table Trac  Phoenix Footwear

Pay attention - limited upside

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

Pair Corralation between Table Trac and Phoenix Footwear

Given the investment horizon of 90 days Table Trac is expected to under-perform the Phoenix Footwear. But the otc stock apears to be less risky and, when comparing its historical volatility, Table Trac is 2.0 times less risky than Phoenix Footwear. The otc stock trades about 0.0 of its potential returns per unit of risk. The Phoenix Footwear Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  15.00  in Phoenix Footwear Group on October 26, 2024 and sell it today you would earn a total of  1.00  from holding Phoenix Footwear Group or generate 6.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	25.11%
Values	Daily Returns

Table Trac  vs.  Phoenix Footwear Group

Table Trac

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Table Trac are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Table Trac may actually be approaching a critical reversion point that can send shares even higher in February 2025.

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.

Pair Trading with Table Trac and Phoenix Footwear

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

The idea behind Table Trac and Phoenix Footwear Group 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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.