Correlation Between Vitec Software and Phoenix Group

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

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

Diversification Opportunities for Vitec Software and Phoenix Group

-0.28

Correlation Coefficient

Vitec Software  Phoenix Group

Very good diversification

The 3 months correlation between Vitec and Phoenix is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Vitec Software Group and Phoenix Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix Group Holdings and Vitec Software 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 Vitec Software Group are associated (or correlated) with Phoenix Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phoenix Group Holdings has no effect on the direction of Vitec Software i.e., Vitec Software and Phoenix Group go up and down completely randomly.

Pair Corralation between Vitec Software and Phoenix Group

Assuming the 90 days trading horizon Vitec Software Group is expected to under-perform the Phoenix Group. In addition to that, Vitec Software is 2.95 times more volatile than Phoenix Group Holdings. It trades about -0.15 of its total potential returns per unit of risk. Phoenix Group Holdings is currently generating about 0.18 per unit of volatility. If you would invest  58,150  in Phoenix Group Holdings on April 20, 2025 and sell it today you would earn a total of  6,500  from holding Phoenix Group Holdings or generate 11.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Vitec Software Group  vs.  Phoenix Group Holdings

Vitec Software Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vitec Software Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Phoenix Group Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Phoenix Group Holdings are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Phoenix Group may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Vitec Software and Phoenix Group

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

The idea behind Vitec Software Group and Phoenix Group 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .