Correlation Between Phoenix New and Ooma
Can any of the company-specific risk be diversified away by investing in both Phoenix New and Ooma 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 Phoenix New and Ooma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phoenix New Media and Ooma Inc, you can compare the effects of market volatilities on Phoenix New and Ooma 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 Phoenix New with a short position of Ooma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phoenix New and Ooma.
Diversification Opportunities for Phoenix New and Ooma
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Phoenix and Ooma is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Phoenix New Media and Ooma Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ooma Inc and Phoenix New 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 Phoenix New Media are associated (or correlated) with Ooma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ooma Inc has no effect on the direction of Phoenix New i.e., Phoenix New and Ooma go up and down completely randomly.
Pair Corralation between Phoenix New and Ooma
Given the investment horizon of 90 days Phoenix New is expected to generate 3.16 times less return on investment than Ooma. In addition to that, Phoenix New is 2.67 times more volatile than Ooma Inc. It trades about 0.03 of its total potential returns per unit of risk. Ooma Inc is currently generating about 0.28 per unit of volatility. If you would invest 1,059 in Ooma Inc on August 31, 2024 and sell it today you would earn a total of 387.00 from holding Ooma Inc or generate 36.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Phoenix New Media vs. Ooma Inc
Performance |
| Timeline |
| Phoenix New Media |
| Ooma Inc |
Phoenix New and Ooma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phoenix New and Ooma
The main advantage of trading using opposite Phoenix New and Ooma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phoenix New position performs unexpectedly, Ooma 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 Ooma will offset losses from the drop in Ooma's long position.| Phoenix New vs. Onfolio Holdings | Phoenix New vs. Starbox Group Holdings | Phoenix New vs. MediaAlpha | Phoenix New vs. Metalpha Technology Holding |
| Ooma vs. KORE Group Holdings | Ooma vs. Consolidated Communications | Ooma vs. Cogent Communications Group | Ooma vs. Liberty Broadband Srs |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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