Correlation Between Bioventix and Phoenix Group

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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 Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Bioventix  vs.  Phoenix Group Holdings

 Performance 
       Timeline  
Bioventix 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Bioventix are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Bioventix may actually be approaching a critical reversion point that can send shares even higher in August 2025.
Phoenix Group Holdings 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Over the last 90 days Phoenix Group Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively weak basic indicators, Phoenix Group may actually be approaching a critical reversion point that can send shares even higher in August 2025.

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.
The idea behind Bioventix 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.
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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