Correlation Between US Physical and FONIX MOBILE

Can any of the company-specific risk be diversified away by investing in both US Physical and FONIX MOBILE 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 US Physical and FONIX MOBILE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between US Physical Therapy and FONIX MOBILE PLC, you can compare the effects of market volatilities on US Physical and FONIX MOBILE 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 US Physical with a short position of FONIX MOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Physical and FONIX MOBILE.

Diversification Opportunities for US Physical and FONIX MOBILE

0.43

Correlation Coefficient

US Physical  FONIX MOBILE

Very weak diversification

The 3 months correlation between UPH and FONIX is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding US Physical Therapy and FONIX MOBILE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FONIX MOBILE PLC and US Physical 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 US Physical Therapy are associated (or correlated) with FONIX MOBILE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FONIX MOBILE PLC has no effect on the direction of US Physical i.e., US Physical and FONIX MOBILE go up and down completely randomly.

Pair Corralation between US Physical and FONIX MOBILE

Assuming the 90 days horizon US Physical Therapy is expected to generate 1.03 times more return on investment than FONIX MOBILE. However, US Physical is 1.03 times more volatile than FONIX MOBILE PLC. It trades about 0.11 of its potential returns per unit of risk. FONIX MOBILE PLC is currently generating about 0.11 per unit of risk. If you would invest  5,716  in US Physical Therapy on April 21, 2025 and sell it today you would earn a total of  734.00  from holding US Physical Therapy or generate 12.84% return on investment over 90 days.

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

US Physical Therapy  vs.  FONIX MOBILE PLC

US Physical Therapy

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in US Physical Therapy are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, US Physical reported solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with US Physical and FONIX MOBILE

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

The idea behind US Physical Therapy and FONIX MOBILE PLC 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.