Correlation Between Fonix Mobile and Elmos Semiconductor

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Fonix Mobile and Elmos Semiconductor 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 Elmos Semiconductor 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 Elmos Semiconductor SE, you can compare the effects of market volatilities on Fonix Mobile and Elmos Semiconductor 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 Elmos Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fonix Mobile and Elmos Semiconductor.

Diversification Opportunities for Fonix Mobile and Elmos Semiconductor

FonixElmosDiversified AwayFonixElmosDiversified Away100%
-0.01
  Correlation Coefficient

Good diversification

The 3 months correlation between Fonix and Elmos is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Fonix Mobile plc and Elmos Semiconductor SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elmos Semiconductor 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 Elmos Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elmos Semiconductor has no effect on the direction of Fonix Mobile i.e., Fonix Mobile and Elmos Semiconductor go up and down completely randomly.

Pair Corralation between Fonix Mobile and Elmos Semiconductor

Assuming the 90 days trading horizon Fonix Mobile plc is expected to generate 1.15 times more return on investment than Elmos Semiconductor. However, Fonix Mobile is 1.15 times more volatile than Elmos Semiconductor SE. It trades about 0.18 of its potential returns per unit of risk. Elmos Semiconductor SE is currently generating about -0.2 per unit of risk. If you would invest  20,421  in Fonix Mobile plc on November 20, 2024 and sell it today you would earn a total of  1,929  from holding Fonix Mobile plc or generate 9.45% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Fonix Mobile plc  vs.  Elmos Semiconductor SE

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -20-15-10-505
JavaScript chart by amCharts 3.21.15FNX 0N9K
       Timeline  
Fonix Mobile plc 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Fonix Mobile plc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Fonix Mobile is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb195200205210215220225230235
Elmos Semiconductor 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Elmos Semiconductor SE are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Elmos Semiconductor unveiled solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb6065707580

Fonix Mobile and Elmos Semiconductor Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-8.92-6.68-4.44-2.20.012.214.456.698.94 0.020.030.040.05
JavaScript chart by amCharts 3.21.15FNX 0N9K
       Returns  

Pair Trading with Fonix Mobile and Elmos Semiconductor

The main advantage of trading using opposite Fonix Mobile and Elmos Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fonix Mobile position performs unexpectedly, Elmos Semiconductor 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 Elmos Semiconductor will offset losses from the drop in Elmos Semiconductor's long position.
The idea behind Fonix Mobile plc and Elmos Semiconductor SE 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

Other Complementary Tools

Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators