Correlation Between ITEX Corp and PHI

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

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

Diversification Opportunities for ITEX Corp and PHI

0.21

Correlation Coefficient

ITEX Corp  PHI

Modest diversification

The 3 months correlation between ITEX and PHI is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding ITEX Corp and PHI Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHI Group and ITEX Corp 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 ITEX Corp are associated (or correlated) with PHI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHI Group has no effect on the direction of ITEX Corp i.e., ITEX Corp and PHI go up and down completely randomly.

Pair Corralation between ITEX Corp and PHI

Given the investment horizon of 90 days ITEX Corp is expected to under-perform the PHI. But the pink sheet apears to be less risky and, when comparing its historical volatility, ITEX Corp is 10.06 times less risky than PHI. The pink sheet trades about -0.04 of its potential returns per unit of risk. The PHI Group is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  0.02  in PHI Group on August 26, 2025 and sell it today you would lose (0.01) from holding PHI Group or give up 50.0% of portfolio value over 90 days.

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

ITEX Corp  vs.  PHI Group

ITEX Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days ITEX Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

PHI Group

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in PHI Group are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady forward indicators, PHI disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ITEX Corp and PHI

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

The idea behind ITEX Corp and PHI 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.