Correlation Between Ferguson Plc and Fonix Mobile

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

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

Diversification Opportunities for Ferguson Plc and Fonix Mobile

0.37

Correlation Coefficient

Ferguson Plc  Fonix Mobile

Weak diversification

The 3 months correlation between Ferguson and Fonix is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Ferguson Plc 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 Ferguson Plc 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 Ferguson Plc 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 Ferguson Plc i.e., Ferguson Plc and Fonix Mobile go up and down completely randomly.

Pair Corralation between Ferguson Plc and Fonix Mobile

Assuming the 90 days trading horizon Ferguson Plc is expected to generate 1.07 times less return on investment than Fonix Mobile. But when comparing it to its historical volatility, Ferguson Plc is 1.4 times less risky than Fonix Mobile. It trades about 0.05 of its potential returns per unit of risk. Fonix Mobile plc is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  16,920  in Fonix Mobile plc on April 20, 2025 and sell it today you would earn a total of  5,330  from holding Fonix Mobile plc or generate 31.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	99.8%
Values	Daily Returns

Ferguson Plc  vs.  Fonix Mobile plc

Ferguson Plc

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ferguson Plc are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Ferguson Plc 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 Ferguson Plc and Fonix Mobile

The main advantage of trading using opposite Ferguson Plc and Fonix Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ferguson Plc 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 Ferguson Plc 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.