Correlation Between Phoenix Silicon and Standard Foods

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

By analyzing existing cross correlation between Phoenix Silicon International and Standard Foods Corp, you can compare the effects of market volatilities on Phoenix Silicon and Standard Foods 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 Silicon with a short position of Standard Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phoenix Silicon and Standard Foods.

Diversification Opportunities for Phoenix Silicon and Standard Foods

-0.74

Correlation Coefficient

Phoenix Silicon  Standard Foods

Pay attention - limited upside

The 3 months correlation between Phoenix and Standard is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Phoenix Silicon International and Standard Foods Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Standard Foods Corp and Phoenix Silicon 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 Silicon International are associated (or correlated) with Standard Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Standard Foods Corp has no effect on the direction of Phoenix Silicon i.e., Phoenix Silicon and Standard Foods go up and down completely randomly.

Pair Corralation between Phoenix Silicon and Standard Foods

Assuming the 90 days trading horizon Phoenix Silicon International is expected to generate 8.45 times more return on investment than Standard Foods. However, Phoenix Silicon is 8.45 times more volatile than Standard Foods Corp. It trades about 0.16 of its potential returns per unit of risk. Standard Foods Corp is currently generating about -0.23 per unit of risk. If you would invest  7,384  in Phoenix Silicon International on May 7, 2025 and sell it today you would earn a total of  9,016  from holding Phoenix Silicon International or generate 122.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Phoenix Silicon International  vs.  Standard Foods Corp

Phoenix Silicon Inte

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Phoenix Silicon International are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Phoenix Silicon showed solid returns over the last few months and may actually be approaching a breakup point.

Standard Foods Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Standard Foods Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in September 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Phoenix Silicon and Standard Foods

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

The idea behind Phoenix Silicon International and Standard Foods Corp 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.