Correlation Between Fair Oaks and Phoenix Group
Can any of the company-specific risk be diversified away by investing in both Fair Oaks and Phoenix Group 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 Fair Oaks and Phoenix Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fair Oaks Income and Phoenix Group Holdings, you can compare the effects of market volatilities on Fair Oaks and Phoenix Group 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 Fair Oaks with a short position of Phoenix Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fair Oaks and Phoenix Group.
Diversification Opportunities for Fair Oaks and Phoenix Group
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fair and Phoenix is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Fair Oaks Income and Phoenix Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix Group Holdings and Fair Oaks 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 Fair Oaks Income are associated (or correlated) with Phoenix Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phoenix Group Holdings has no effect on the direction of Fair Oaks i.e., Fair Oaks and Phoenix Group go up and down completely randomly.
Pair Corralation between Fair Oaks and Phoenix Group
Assuming the 90 days trading horizon Fair Oaks Income is expected to generate 0.46 times more return on investment than Phoenix Group. However, Fair Oaks Income is 2.2 times less risky than Phoenix Group. It trades about 0.1 of its potential returns per unit of risk. Phoenix Group Holdings is currently generating about 0.02 per unit of risk. If you would invest 45.00 in Fair Oaks Income on August 31, 2024 and sell it today you would earn a total of 12.00 from holding Fair Oaks Income or generate 26.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fair Oaks Income vs. Phoenix Group Holdings
Performance |
| Timeline |
| Fair Oaks Income |
| Phoenix Group Holdings |
Fair Oaks and Phoenix Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fair Oaks and Phoenix Group
The main advantage of trading using opposite Fair Oaks and Phoenix Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fair Oaks position performs unexpectedly, Phoenix Group 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 Group will offset losses from the drop in Phoenix Group's long position.| Fair Oaks vs. Toyota Motor Corp | Fair Oaks vs. SoftBank Group Corp | Fair Oaks vs. OTP Bank Nyrt | Fair Oaks vs. Las Vegas Sands |
| Phoenix Group vs. Aberdeen Diversified Income | Phoenix Group vs. Herald Investment Trust | Phoenix Group vs. Mindflair Plc | Phoenix Group vs. Fair Oaks Income |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |