Correlation Between Socket Mobile and Phoenix New
Can any of the company-specific risk be diversified away by investing in both Socket Mobile and Phoenix New 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 Socket Mobile and Phoenix New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Socket Mobile and Phoenix New Media, you can compare the effects of market volatilities on Socket Mobile and Phoenix New 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 Socket Mobile with a short position of Phoenix New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Socket Mobile and Phoenix New.
Diversification Opportunities for Socket Mobile and Phoenix New
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Socket and Phoenix is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Socket Mobile and Phoenix New Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix New Media and Socket Mobile 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 Socket Mobile are associated (or correlated) with Phoenix New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phoenix New Media has no effect on the direction of Socket Mobile i.e., Socket Mobile and Phoenix New go up and down completely randomly.
Pair Corralation between Socket Mobile and Phoenix New
Given the investment horizon of 90 days Socket Mobile is expected to under-perform the Phoenix New. In addition to that, Socket Mobile is 1.13 times more volatile than Phoenix New Media. It trades about -0.18 of its total potential returns per unit of risk. Phoenix New Media is currently generating about 0.09 per unit of volatility. If you would invest 212.00 in Phoenix New Media on May 27, 2025 and sell it today you would earn a total of 12.00 from holding Phoenix New Media or generate 5.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Socket Mobile vs. Phoenix New Media
Performance |
| Timeline |
| Socket Mobile |
| Phoenix New Media |
Socket Mobile and Phoenix New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Socket Mobile and Phoenix New
The main advantage of trading using opposite Socket Mobile and Phoenix New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Socket Mobile position performs unexpectedly, Phoenix New 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 New will offset losses from the drop in Phoenix New's long position.| Socket Mobile vs. Iiot Oxys | Socket Mobile vs. AstroNova | Socket Mobile vs. Red Cat Holdings | Socket Mobile vs. Kaixin Auto Holdings |
| Phoenix New vs. Cheetah Mobile | Phoenix New vs. Asset Entities Class | Phoenix New vs. Thryv Holdings | Phoenix New vs. LightInTheBox Holding Co |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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