Correlation Between Just Eat and Phonex

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

By analyzing existing cross correlation between Just Eat Takeaway and Phonex Inc, you can compare the effects of market volatilities on Just Eat and Phonex 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 Just Eat with a short position of Phonex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Just Eat and Phonex.

Diversification Opportunities for Just Eat and Phonex

0.07

Correlation Coefficient

Just Eat  Phonex

Significant diversification

The 3 months correlation between Just and Phonex is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Just Eat Takeaway and Phonex Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phonex Inc and Just Eat 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 Just Eat Takeaway are associated (or correlated) with Phonex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phonex Inc has no effect on the direction of Just Eat i.e., Just Eat and Phonex go up and down completely randomly.

Pair Corralation between Just Eat and Phonex

If you would invest  107.00  in Phonex Inc on September 16, 2024 and sell it today you would earn a total of  10.00  from holding Phonex Inc or generate 9.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.54%
Values	Daily Returns

Just Eat Takeaway  vs.  Phonex Inc

Just Eat Takeaway

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Just Eat Takeaway has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Just Eat is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Phonex Inc

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Phonex Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak technical indicators, Phonex may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Just Eat and Phonex

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

The idea behind Just Eat Takeaway and Phonex Inc 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.