Correlation Between Phoenix Group and OLD MUTUAL

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

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

Diversification Opportunities for Phoenix Group and OLD MUTUAL

0.6

Correlation Coefficient

Phoenix Group  OLD MUTUAL

Poor diversification

The 3 months correlation between Phoenix and OLD is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Phoenix Group Holdings and OLD MUTUAL LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OLD MUTUAL LTD and Phoenix Group 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 Group Holdings are associated (or correlated) with OLD MUTUAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OLD MUTUAL LTD has no effect on the direction of Phoenix Group i.e., Phoenix Group and OLD MUTUAL go up and down completely randomly.

Pair Corralation between Phoenix Group and OLD MUTUAL

Assuming the 90 days horizon Phoenix Group Holdings is expected to generate 0.25 times more return on investment than OLD MUTUAL. However, Phoenix Group Holdings is 3.93 times less risky than OLD MUTUAL. It trades about 0.12 of its potential returns per unit of risk. OLD MUTUAL LTD is currently generating about 0.02 per unit of risk. If you would invest  669.00  in Phoenix Group Holdings on April 22, 2025 and sell it today you would earn a total of  77.00  from holding Phoenix Group Holdings or generate 11.51% return on investment over 90 days.

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

Phoenix Group Holdings  vs.  OLD MUTUAL LTD

Phoenix Group Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Phoenix Group Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Phoenix Group may actually be approaching a critical reversion point that can send shares even higher in August 2025.

OLD MUTUAL LTD

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in OLD MUTUAL LTD are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, OLD MUTUAL 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 Group and OLD MUTUAL

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

The idea behind Phoenix Group Holdings and OLD MUTUAL LTD 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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.