Correlation Between Fonix Mobile and Mobilezone Holding

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

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

Diversification Opportunities for Fonix Mobile and Mobilezone Holding

0.41

Correlation Coefficient

Fonix Mobile  Mobilezone Holding

Very weak diversification

The 3 months correlation between Fonix and Mobilezone is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Fonix Mobile plc and mobilezone holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on mobilezone holding and Fonix 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 Fonix Mobile plc are associated (or correlated) with Mobilezone Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of mobilezone holding has no effect on the direction of Fonix Mobile i.e., Fonix Mobile and Mobilezone Holding go up and down completely randomly.

Pair Corralation between Fonix Mobile and Mobilezone Holding

Assuming the 90 days trading horizon Fonix Mobile plc is expected to generate 1.41 times more return on investment than Mobilezone Holding. However, Fonix Mobile is 1.41 times more volatile than mobilezone holding AG. It trades about 0.07 of its potential returns per unit of risk. mobilezone holding AG is currently generating about 0.05 per unit of risk. If you would invest  20,000  in Fonix Mobile plc on April 23, 2025 and sell it today you would earn a total of  1,600  from holding Fonix Mobile plc or generate 8.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	96.88%
Values	Daily Returns

Fonix Mobile plc  vs.  mobilezone holding AG

Fonix Mobile plc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Fonix Mobile plc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Fonix Mobile may actually be approaching a critical reversion point that can send shares even higher in August 2025.

mobilezone holding

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in mobilezone holding AG are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Mobilezone Holding is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Fonix Mobile and Mobilezone Holding

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

The idea behind Fonix Mobile plc and mobilezone holding AG 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.