Correlation Between American Rebel and Phoenix Footwear
Can any of the company-specific risk be diversified away by investing in both American Rebel 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 American Rebel and Phoenix Footwear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Rebel Holdings and Phoenix Footwear Group, you can compare the effects of market volatilities on American Rebel 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 American Rebel with a short position of Phoenix Footwear. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Rebel and Phoenix Footwear.
Diversification Opportunities for American Rebel and Phoenix Footwear
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between American and Phoenix is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding American Rebel Holdings and Phoenix Footwear Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix Footwear and American Rebel 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 American Rebel Holdings 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 American Rebel i.e., American Rebel and Phoenix Footwear go up and down completely randomly.
Pair Corralation between American Rebel and Phoenix Footwear
If you would invest 16.00 in Phoenix Footwear Group on August 31, 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 Together |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
American Rebel Holdings vs. Phoenix Footwear Group
Performance |
| Timeline |
| American Rebel Holdings |
| Phoenix Footwear |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Rebel and Phoenix Footwear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Rebel and Phoenix Footwear
The main advantage of trading using opposite American Rebel and Phoenix Footwear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Rebel 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.| American Rebel vs. Forward Industries | American Rebel vs. Designer Brands | American Rebel vs. Wolverine World Wide | American Rebel vs. On Holding |
| Phoenix Footwear vs. Good Vibrations Shoes | Phoenix Footwear vs. Wolverine World Wide | Phoenix Footwear vs. American Rebel Holdings | Phoenix Footwear vs. Deckers Outdoor |
Check out your portfolio center.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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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