Correlation Between Fonix Mobile and Abrdn Property

Can any of the company-specific risk be diversified away by investing in both Fonix Mobile and Abrdn Property 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 Abrdn Property 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 abrdn Property Income, you can compare the effects of market volatilities on Fonix Mobile and Abrdn Property 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 Abrdn Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fonix Mobile and Abrdn Property.

Diversification Opportunities for Fonix Mobile and Abrdn Property

-0.25

Correlation Coefficient

Fonix Mobile  Abrdn Property

Very good diversification

The 3 months correlation between Fonix and Abrdn is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Fonix Mobile plc and abrdn Property Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on abrdn Property Income 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 Abrdn Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of abrdn Property Income has no effect on the direction of Fonix Mobile i.e., Fonix Mobile and Abrdn Property go up and down completely randomly.

Pair Corralation between Fonix Mobile and Abrdn Property

Assuming the 90 days trading horizon Fonix Mobile plc is expected to generate 0.77 times more return on investment than Abrdn Property. However, Fonix Mobile plc is 1.3 times less risky than Abrdn Property. It trades about 0.09 of its potential returns per unit of risk. abrdn Property Income is currently generating about -0.07 per unit of risk. 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	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Fonix Mobile plc  vs.  abrdn Property Income

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.

abrdn Property Income

Risk-Adjusted Performance

Very Weak

Over the last 90 days abrdn Property Income has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Fonix Mobile and Abrdn Property

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

The idea behind Fonix Mobile plc and abrdn Property Income 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.