Correlation Between Bioventix and Phoenix Group
Can any of the company-specific risk be diversified away by investing in both Bioventix 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 Bioventix and Phoenix Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bioventix and Phoenix Group Holdings, you can compare the effects of market volatilities on Bioventix 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 Bioventix with a short position of Phoenix Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bioventix and Phoenix Group.
Diversification Opportunities for Bioventix and Phoenix Group
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bioventix and Phoenix is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Bioventix 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 Bioventix 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 Bioventix 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 Bioventix i.e., Bioventix and Phoenix Group go up and down completely randomly.
Pair Corralation between Bioventix and Phoenix Group
Assuming the 90 days trading horizon Bioventix is expected to generate 1.02 times less return on investment than Phoenix Group. In addition to that, Bioventix is 2.68 times more volatile than Phoenix Group Holdings. It trades about 0.06 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 21, 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 Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Bioventix vs. Phoenix Group Holdings
Performance |
Timeline |
Bioventix |
Phoenix Group Holdings |
Risk-Adjusted Performance
Good
Weak | Strong |
Bioventix and Phoenix Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bioventix and Phoenix Group
The main advantage of trading using opposite Bioventix and Phoenix Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bioventix 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.Bioventix vs. Scandic Hotels Group | Bioventix vs. OneSavings Bank PLC | Bioventix vs. Dalata Hotel Group | Bioventix vs. Mobius Investment Trust |
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Check out your portfolio center.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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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