Correlation Between AMADEUS IT and FONIX MOBILE

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

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

Diversification Opportunities for AMADEUS IT and FONIX MOBILE

-0.12

Correlation Coefficient

AMADEUS IT  FONIX MOBILE

Good diversification

The 3 months correlation between AMADEUS and FONIX is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding AMADEUS IT GRP 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 AMADEUS IT 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 AMADEUS IT GRP 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 AMADEUS IT i.e., AMADEUS IT and FONIX MOBILE go up and down completely randomly.

Pair Corralation between AMADEUS IT and FONIX MOBILE

Assuming the 90 days trading horizon AMADEUS IT GRP is expected to generate 0.67 times more return on investment than FONIX MOBILE. However, AMADEUS IT GRP is 1.49 times less risky than FONIX MOBILE. It trades about 0.02 of its potential returns per unit of risk. FONIX MOBILE PLC is currently generating about -0.07 per unit of risk. If you would invest  6,962  in AMADEUS IT GRP on May 15, 2025 and sell it today you would earn a total of  88.00  from holding AMADEUS IT GRP or generate 1.26% return on investment over 90 days.

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

AMADEUS IT GRP  vs.  FONIX MOBILE PLC

AMADEUS IT GRP

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in AMADEUS IT GRP are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, AMADEUS IT is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

FONIX MOBILE PLC

Risk-Adjusted Performance

Weakest

Over the last 90 days FONIX MOBILE PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with AMADEUS IT and FONIX MOBILE

The main advantage of trading using opposite AMADEUS IT and FONIX MOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMADEUS IT 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 AMADEUS IT GRP 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.

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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.