Correlation Between Xcel Brands and Phoenix New
Can any of the company-specific risk be diversified away by investing in both Xcel Brands 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 Xcel Brands and Phoenix New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xcel Brands and Phoenix New Media, you can compare the effects of market volatilities on Xcel Brands 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 Xcel Brands with a short position of Phoenix New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xcel Brands and Phoenix New.
Diversification Opportunities for Xcel Brands and Phoenix New
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xcel and Phoenix is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Xcel Brands 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 Xcel Brands 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 Xcel Brands 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 Xcel Brands i.e., Xcel Brands and Phoenix New go up and down completely randomly.
Pair Corralation between Xcel Brands and Phoenix New
Given the investment horizon of 90 days Xcel Brands is expected to under-perform the Phoenix New. In addition to that, Xcel Brands is 1.37 times more volatile than Phoenix New Media. It trades about -0.11 of its total potential returns per unit of risk. Phoenix New Media is currently generating about 0.0 per unit of volatility. If you would invest 219.00 in Phoenix New Media on May 1, 2025 and sell it today you would lose (9.00) from holding Phoenix New Media or give up 4.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xcel Brands vs. Phoenix New Media
Performance |
| Timeline |
| Xcel Brands |
| Phoenix New Media |
Xcel Brands and Phoenix New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xcel Brands and Phoenix New
The main advantage of trading using opposite Xcel Brands and Phoenix New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xcel Brands 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.| Xcel Brands vs. G III Apparel Group | Xcel Brands vs. H M Hennes | Xcel Brands vs. Oxbridge Re Holdings | Xcel Brands vs. Oxford Industries |
| 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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