Correlation Between Phoenix Education and Spectrum Brands

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

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

Diversification Opportunities for Phoenix Education and Spectrum Brands

0.05

Correlation Coefficient

Phoenix Education  Spectrum Brands

Significant diversification

The 3 months correlation between Phoenix and Spectrum is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Phoenix Education Partners, and Spectrum Brands Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spectrum Brands Holdings and Phoenix Education 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 Education Partners, are associated (or correlated) with Spectrum Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spectrum Brands Holdings has no effect on the direction of Phoenix Education i.e., Phoenix Education and Spectrum Brands go up and down completely randomly.

Pair Corralation between Phoenix Education and Spectrum Brands

Given the investment horizon of 90 days Phoenix Education Partners, is expected to under-perform the Spectrum Brands. In addition to that, Phoenix Education is 1.04 times more volatile than Spectrum Brands Holdings. It trades about -0.12 of its total potential returns per unit of risk. Spectrum Brands Holdings is currently generating about 0.04 per unit of volatility. If you would invest  5,250  in Spectrum Brands Holdings on August 2, 2025 and sell it today you would earn a total of  231.00  from holding Spectrum Brands Holdings or generate 4.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	25.4%
Values	Daily Returns

Phoenix Education Partners,  vs.  Spectrum Brands Holdings

Phoenix Education

Risk-Adjusted Performance

Weakest

Over the last 90 days Phoenix Education Partners, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in December 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Spectrum Brands Holdings

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Spectrum Brands Holdings are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Spectrum Brands is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Phoenix Education and Spectrum Brands

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

The idea behind Phoenix Education Partners, and Spectrum Brands 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.