Correlation Between FONIX MOBILE and Constellation Software

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

Diversification Opportunities for FONIX MOBILE and Constellation Software

0.77

Correlation Coefficient

FONIX MOBILE  Constellation Software

Poor diversification

The 3 months correlation between FONIX and Constellation is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding FONIX MOBILE PLC and Constellation Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Constellation Software 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 Constellation Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Constellation Software has no effect on the direction of FONIX MOBILE i.e., FONIX MOBILE and Constellation Software go up and down completely randomly.

Pair Corralation between FONIX MOBILE and Constellation Software

Assuming the 90 days horizon FONIX MOBILE PLC is expected to generate 1.64 times more return on investment than Constellation Software. However, FONIX MOBILE is 1.64 times more volatile than Constellation Software. It trades about 0.11 of its potential returns per unit of risk. Constellation Software is currently generating about 0.09 per unit of risk. If you would invest  222.00  in FONIX MOBILE PLC on April 21, 2025 and sell it today you would earn a total of  28.00  from holding FONIX MOBILE PLC or generate 12.61% 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.  Constellation Software

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 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, FONIX MOBILE reported solid returns over the last few months and may actually be approaching a breakup point.

Constellation Software

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Constellation Software are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile fundamental indicators, Constellation Software may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with FONIX MOBILE and Constellation Software

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

The idea behind FONIX MOBILE PLC and Constellation Software 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.