Correlation Between Fonix Mobile and Anglo Asian
Can any of the company-specific risk be diversified away by investing in both Fonix Mobile and Anglo Asian 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 Anglo Asian 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 Anglo Asian Mining, you can compare the effects of market volatilities on Fonix Mobile and Anglo Asian 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 Anglo Asian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fonix Mobile and Anglo Asian.
Diversification Opportunities for Fonix Mobile and Anglo Asian
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fonix and Anglo is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Fonix Mobile plc and Anglo Asian Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglo Asian Mining 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 Anglo Asian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglo Asian Mining has no effect on the direction of Fonix Mobile i.e., Fonix Mobile and Anglo Asian go up and down completely randomly.
Pair Corralation between Fonix Mobile and Anglo Asian
Assuming the 90 days trading horizon Fonix Mobile plc is expected to generate 1.86 times more return on investment than Anglo Asian. However, Fonix Mobile is 1.86 times more volatile than Anglo Asian Mining. It trades about 0.14 of its potential returns per unit of risk. Anglo Asian Mining is currently generating about -0.02 per unit of risk. If you would invest 19,650 in Fonix Mobile plc on October 12, 2024 and sell it today you would earn a total of 1,750 from holding Fonix Mobile plc or generate 8.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fonix Mobile plc vs. Anglo Asian Mining
Performance |
| Timeline |
| Fonix Mobile plc |
| Anglo Asian Mining |
Fonix Mobile and Anglo Asian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fonix Mobile and Anglo Asian
The main advantage of trading using opposite Fonix Mobile and Anglo Asian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fonix Mobile position performs unexpectedly, Anglo Asian 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 Anglo Asian will offset losses from the drop in Anglo Asian's long position.| Fonix Mobile vs. United Airlines Holdings | Fonix Mobile vs. Cembra Money Bank | Fonix Mobile vs. Zurich Insurance Group | Fonix Mobile vs. Nordea Bank Abp |
| Anglo Asian vs. Zoom Video Communications | Anglo Asian vs. BW Offshore | Anglo Asian vs. Nordic Semiconductor ASA | Anglo Asian vs. Darden Restaurants |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |