Correlation Between Workspace Group and Phoenix Spree

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

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

Diversification Opportunities for Workspace Group and Phoenix Spree

0.26

Correlation Coefficient

Workspace Group  Phoenix Spree

Modest diversification

The 3 months correlation between Workspace and Phoenix is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Workspace Group PLC and Phoenix Spree Deutschland in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix Spree Deutschland and Workspace Group 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 Workspace Group PLC are associated (or correlated) with Phoenix Spree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phoenix Spree Deutschland has no effect on the direction of Workspace Group i.e., Workspace Group and Phoenix Spree go up and down completely randomly.

Pair Corralation between Workspace Group and Phoenix Spree

Assuming the 90 days trading horizon Workspace Group PLC is expected to under-perform the Phoenix Spree. But the stock apears to be less risky and, when comparing its historical volatility, Workspace Group PLC is 1.03 times less risky than Phoenix Spree. The stock trades about -0.02 of its potential returns per unit of risk. The Phoenix Spree Deutschland is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  16,200  in Phoenix Spree Deutschland on April 23, 2025 and sell it today you would earn a total of  150.00  from holding Phoenix Spree Deutschland or generate 0.93% return on investment over 90 days.

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

Workspace Group PLC  vs.  Phoenix Spree Deutschland

Workspace Group PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Workspace Group PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Workspace Group is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Phoenix Spree Deutschland

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Phoenix Spree Deutschland are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Phoenix Spree is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Workspace Group and Phoenix Spree

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

The idea behind Workspace Group PLC and Phoenix Spree Deutschland 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.