Correlation Between PHI and Armada Mercantile

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

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

Diversification Opportunities for PHI and Armada Mercantile

0.0

Correlation Coefficient

PHI  Armada Mercantile

Pay attention - limited upside

The 3 months correlation between PHI and Armada is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PHI Group and Armada Mercantile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Armada Mercantile and PHI 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 PHI Group are associated (or correlated) with Armada Mercantile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Armada Mercantile has no effect on the direction of PHI i.e., PHI and Armada Mercantile go up and down completely randomly.

Pair Corralation between PHI and Armada Mercantile

If you would invest (100.00) in Armada Mercantile on August 26, 2025 and sell it today you would earn a total of  100.00  from holding Armada Mercantile or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

PHI Group  vs.  Armada Mercantile

PHI Group

Risk-Adjusted Performance

Fair

Over the last 90 days PHI Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward indicators, PHI is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Armada Mercantile

Risk-Adjusted Performance

Weakest

Over the last 90 days Armada Mercantile has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Armada Mercantile is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with PHI and Armada Mercantile

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

The idea behind PHI Group and Armada Mercantile 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.