Correlation Between Fonix Mobile and MTI Wireless

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

Diversification Opportunities for Fonix Mobile and MTI Wireless

0.76

Correlation Coefficient

Fonix Mobile  MTI Wireless

Poor diversification

The 3 months correlation between Fonix and MTI is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Fonix Mobile plc and MTI Wireless Edge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MTI Wireless Edge 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 MTI Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MTI Wireless Edge has no effect on the direction of Fonix Mobile i.e., Fonix Mobile and MTI Wireless go up and down completely randomly.

Pair Corralation between Fonix Mobile and MTI Wireless

Assuming the 90 days trading horizon Fonix Mobile plc is expected to under-perform the MTI Wireless. But the stock apears to be less risky and, when comparing its historical volatility, Fonix Mobile plc is 1.91 times less risky than MTI Wireless. The stock trades about -0.04 of its potential returns per unit of risk. The MTI Wireless Edge is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  4,950  in MTI Wireless Edge on August 31, 2025 and sell it today you would earn a total of  150.00  from holding MTI Wireless Edge or generate 3.03% return on investment over 90 days.

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

Fonix Mobile plc  vs.  MTI Wireless Edge

Fonix Mobile plc

Risk-Adjusted Performance

Weakest

Over the last 90 days Fonix Mobile plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Fonix Mobile is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

MTI Wireless Edge

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in MTI Wireless Edge are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, MTI Wireless may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with Fonix Mobile and MTI Wireless

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

The idea behind Fonix Mobile plc and MTI Wireless Edge 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.