Correlation Between Phoenix New and DGTL Holdings

Can any of the company-specific risk be diversified away by investing in both Phoenix New and DGTL Holdings 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 DGTL Holdings 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 DGTL Holdings, you can compare the effects of market volatilities on Phoenix New and DGTL Holdings 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 DGTL Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phoenix New and DGTL Holdings.

Diversification Opportunities for Phoenix New and DGTL Holdings

0.0

Correlation Coefficient

Phoenix New  DGTL Holdings

Pay attention - limited upside

The 3 months correlation between Phoenix and DGTL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Phoenix New Media and DGTL Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DGTL Holdings 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 DGTL Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DGTL Holdings has no effect on the direction of Phoenix New i.e., Phoenix New and DGTL Holdings go up and down completely randomly.

Pair Corralation between Phoenix New and DGTL Holdings

If you would invest  215.00  in Phoenix New Media on May 3, 2025 and sell it today you would lose (3.00) from holding Phoenix New Media or give up 1.4% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Phoenix New Media  vs.  DGTL Holdings

Phoenix New Media

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Phoenix New Media are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Phoenix New is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

DGTL Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days DGTL Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, DGTL Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Phoenix New and DGTL Holdings

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

The idea behind Phoenix New Media and DGTL Holdings 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.