Correlation Between Fenix Outdoor and Unlimited Travel

Can any of the company-specific risk be diversified away by investing in both Fenix Outdoor and Unlimited Travel 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 Fenix Outdoor and Unlimited Travel into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fenix Outdoor International and Unlimited Travel Group, you can compare the effects of market volatilities on Fenix Outdoor and Unlimited Travel 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 Fenix Outdoor with a short position of Unlimited Travel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fenix Outdoor and Unlimited Travel.

Diversification Opportunities for Fenix Outdoor and Unlimited Travel

-0.81

Correlation Coefficient

Fenix Outdoor  Unlimited Travel

Pay attention - limited upside

The 3 months correlation between Fenix and Unlimited is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Fenix Outdoor International and Unlimited Travel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unlimited Travel and Fenix Outdoor 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 Fenix Outdoor International are associated (or correlated) with Unlimited Travel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unlimited Travel has no effect on the direction of Fenix Outdoor i.e., Fenix Outdoor and Unlimited Travel go up and down completely randomly.

Pair Corralation between Fenix Outdoor and Unlimited Travel

Assuming the 90 days trading horizon Fenix Outdoor International is expected to under-perform the Unlimited Travel. In addition to that, Fenix Outdoor is 1.31 times more volatile than Unlimited Travel Group. It trades about -0.07 of its total potential returns per unit of risk. Unlimited Travel Group is currently generating about 0.16 per unit of volatility. If you would invest  1,596  in Unlimited Travel Group on April 24, 2025 and sell it today you would earn a total of  229.00  from holding Unlimited Travel Group or generate 14.35% return on investment over 90 days.

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

Fenix Outdoor International  vs.  Unlimited Travel Group

Fenix Outdoor Intern

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fenix Outdoor International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Unlimited Travel

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Unlimited Travel Group are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, Unlimited Travel unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Fenix Outdoor and Unlimited Travel

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

The idea behind Fenix Outdoor International and Unlimited Travel Group 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.