Correlation Between Fonix Mobile and Auto Trader

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

Diversification Opportunities for Fonix Mobile and Auto Trader

0.29

Correlation Coefficient

Fonix Mobile  Auto Trader

Modest diversification

The 3 months correlation between Fonix and Auto is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Fonix Mobile plc and Auto Trader Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auto Trader Group 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 Auto Trader. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auto Trader Group has no effect on the direction of Fonix Mobile i.e., Fonix Mobile and Auto Trader go up and down completely randomly.

Pair Corralation between Fonix Mobile and Auto Trader

Assuming the 90 days trading horizon Fonix Mobile plc is expected to generate 1.22 times more return on investment than Auto Trader. However, Fonix Mobile is 1.22 times more volatile than Auto Trader Group. It trades about 0.09 of its potential returns per unit of risk. Auto Trader Group is currently generating about 0.04 per unit of risk. If you would invest  20,000  in Fonix Mobile plc on April 19, 2025 and sell it today you would earn a total of  2,200  from holding Fonix Mobile plc or generate 11.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Fonix Mobile plc  vs.  Auto Trader Group

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.

Auto Trader Group

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Auto Trader Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Auto Trader 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 Auto Trader

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

The idea behind Fonix Mobile plc and Auto Trader Group 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.

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 Commodity Directory module to find actively traded commodities issued by global exchanges.