Correlation Between Volkswagen and FONIX MOBILE

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

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

Diversification Opportunities for Volkswagen and FONIX MOBILE

0.43

Correlation Coefficient

Volkswagen  FONIX MOBILE

Very weak diversification

The 3 months correlation between Volkswagen and FONIX is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Volkswagen AG 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 Volkswagen 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 Volkswagen AG 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 Volkswagen i.e., Volkswagen and FONIX MOBILE go up and down completely randomly.

Pair Corralation between Volkswagen and FONIX MOBILE

Assuming the 90 days horizon Volkswagen is expected to generate 4.32 times less return on investment than FONIX MOBILE. But when comparing it to its historical volatility, Volkswagen AG is 1.19 times less risky than FONIX MOBILE. It trades about 0.03 of its potential returns per unit of risk. FONIX MOBILE PLC is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  226.00  in FONIX MOBILE PLC on April 23, 2025 and sell it today you would earn a total of  24.00  from holding FONIX MOBILE PLC or generate 10.62% return on investment over 90 days.

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

Volkswagen AG  vs.  FONIX MOBILE PLC

Volkswagen AG

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Volkswagen AG are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Volkswagen is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

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. Despite nearly uncertain basic indicators, FONIX MOBILE may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Volkswagen and FONIX MOBILE

The main advantage of trading using opposite Volkswagen and FONIX MOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Volkswagen 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 Volkswagen AG 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.