Correlation Between Compal Electronics and Fonix Mobile
Can any of the company-specific risk be diversified away by investing in both Compal Electronics 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 Compal Electronics and Fonix Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Compal Electronics GDR and Fonix Mobile plc, you can compare the effects of market volatilities on Compal Electronics 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 Compal Electronics with a short position of Fonix Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compal Electronics and Fonix Mobile.
Diversification Opportunities for Compal Electronics and Fonix Mobile
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Compal and Fonix is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Compal Electronics GDR 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 Compal Electronics 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 Compal Electronics GDR 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 Compal Electronics i.e., Compal Electronics and Fonix Mobile go up and down completely randomly.
Pair Corralation between Compal Electronics and Fonix Mobile
If you would invest 20,000 in Fonix Mobile plc on April 20, 2025 and sell it today you would earn a total of 2,250 from holding Fonix Mobile plc or generate 11.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Compal Electronics GDR vs. Fonix Mobile plc
Performance |
Timeline |
Compal Electronics GDR |
Fonix Mobile plc |
Compal Electronics and Fonix Mobile Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Compal Electronics and Fonix Mobile
The main advantage of trading using opposite Compal Electronics and Fonix Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compal Electronics 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.Compal Electronics vs. Blue Star Capital | Compal Electronics vs. Calculus VCT plc | Compal Electronics vs. Gunsynd PLC | Compal Electronics vs. Alba Mineral Resources |
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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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