Correlation Between PHX Energy and Andlauer Healthcare

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

By analyzing existing cross correlation between PHX Energy Services and Andlauer Healthcare Gr, you can compare the effects of market volatilities on PHX Energy and Andlauer Healthcare 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 PHX Energy with a short position of Andlauer Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHX Energy and Andlauer Healthcare.

Diversification Opportunities for PHX Energy and Andlauer Healthcare

-0.54

Correlation Coefficient

PHX Energy  Andlauer Healthcare

Excellent diversification

The 3 months correlation between PHX and Andlauer is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding PHX Energy Services and Andlauer Healthcare Gr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Andlauer Healthcare and PHX Energy 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 PHX Energy Services are associated (or correlated) with Andlauer Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Andlauer Healthcare has no effect on the direction of PHX Energy i.e., PHX Energy and Andlauer Healthcare go up and down completely randomly.

Pair Corralation between PHX Energy and Andlauer Healthcare

Assuming the 90 days trading horizon PHX Energy Services is expected to generate 4.34 times more return on investment than Andlauer Healthcare. However, PHX Energy is 4.34 times more volatile than Andlauer Healthcare Gr. It trades about 0.08 of its potential returns per unit of risk. Andlauer Healthcare Gr is currently generating about -0.04 per unit of risk. If you would invest  761.00  in PHX Energy Services on May 8, 2025 and sell it today you would earn a total of  55.00  from holding PHX Energy Services or generate 7.23% return on investment over 90 days.

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

PHX Energy Services  vs.  Andlauer Healthcare Gr

PHX Energy Services

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in PHX Energy Services are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, PHX Energy may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Andlauer Healthcare

Risk-Adjusted Performance

Weakest

Over the last 90 days Andlauer Healthcare Gr has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Andlauer Healthcare is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with PHX Energy and Andlauer Healthcare

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

The idea behind PHX Energy Services and Andlauer Healthcare Gr 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 Transaction History module to view history of all your transactions and understand their impact on performance.