Correlation Between Phoenix Holdings and Matrix

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

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

Diversification Opportunities for Phoenix Holdings and Matrix

0.96

Correlation Coefficient

Phoenix Holdings  Matrix

Almost no diversification

The 3 months correlation between Phoenix and Matrix is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding The Phoenix Holdings and Matrix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matrix and Phoenix Holdings 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 The Phoenix Holdings are associated (or correlated) with Matrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matrix has no effect on the direction of Phoenix Holdings i.e., Phoenix Holdings and Matrix go up and down completely randomly.

Pair Corralation between Phoenix Holdings and Matrix

Assuming the 90 days trading horizon The Phoenix Holdings is expected to generate 1.29 times more return on investment than Matrix. However, Phoenix Holdings is 1.29 times more volatile than Matrix. It trades about 0.36 of its potential returns per unit of risk. Matrix is currently generating about 0.3 per unit of risk. If you would invest  727,707  in The Phoenix Holdings on May 11, 2025 and sell it today you would earn a total of  402,293  from holding The Phoenix Holdings or generate 55.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

The Phoenix Holdings  vs.  Matrix

Phoenix Holdings

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in The Phoenix Holdings are ranked lower than 28 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Phoenix Holdings sustained solid returns over the last few months and may actually be approaching a breakup point.

Matrix

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Matrix are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Matrix sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Phoenix Holdings and Matrix

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

The idea behind The Phoenix Holdings and Matrix 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.