Correlation Between CVR Energy and Fonix Mobile

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

By analyzing existing cross correlation between CVR Energy and Fonix Mobile plc, you can compare the effects of market volatilities on CVR Energy and Fonix Mobile 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 CVR Energy with a short position of Fonix Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVR Energy and Fonix Mobile.

Diversification Opportunities for CVR Energy and Fonix Mobile

0.39

Correlation Coefficient

CVR Energy  Fonix Mobile

Weak diversification

The 3 months correlation between CVR and Fonix is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding CVR Energy and Fonix Mobile plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fonix Mobile plc and CVR Energy 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 CVR Energy are associated (or correlated) with Fonix Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fonix Mobile plc has no effect on the direction of CVR Energy i.e., CVR Energy and Fonix Mobile go up and down completely randomly.

Pair Corralation between CVR Energy and Fonix Mobile

Assuming the 90 days trading horizon CVR Energy is expected to generate 1.35 times more return on investment than Fonix Mobile. However, CVR Energy is 1.35 times more volatile than Fonix Mobile plc. It trades about 0.28 of its potential returns per unit of risk. Fonix Mobile plc is currently generating about 0.09 per unit of risk. If you would invest  1,883  in CVR Energy on April 20, 2025 and sell it today you would earn a total of  1,010  from holding CVR Energy or generate 53.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.16%
Values	Daily Returns

CVR Energy  vs.  Fonix Mobile plc

CVR Energy

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CVR Energy are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, CVR Energy unveiled solid returns over the last few months and may actually be approaching a breakup point.

Fonix Mobile plc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fonix Mobile plc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Fonix Mobile may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with CVR Energy and Fonix Mobile

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

The idea behind CVR Energy and Fonix Mobile plc 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.