Correlation Between Phonex and Integrated Biopharma

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

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

Diversification Opportunities for Phonex and Integrated Biopharma

-0.16

Correlation Coefficient

Phonex  Integrated Biopharma

Good diversification

The 3 months correlation between Phonex and Integrated is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Phonex Inc and Integrated Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Biopharma and Phonex 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 Phonex Inc are associated (or correlated) with Integrated Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Biopharma has no effect on the direction of Phonex i.e., Phonex and Integrated Biopharma go up and down completely randomly.

Pair Corralation between Phonex and Integrated Biopharma

If you would invest  106.00  in Phonex Inc on September 22, 2024 and sell it today you would earn a total of  11.00  from holding Phonex Inc or generate 10.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Phonex Inc  vs.  Integrated Biopharma

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.

Integrated Biopharma

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Integrated Biopharma has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental drivers, Integrated Biopharma is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Phonex and Integrated Biopharma

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

The idea behind Phonex Inc and Integrated Biopharma 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.