Correlation Between Data Modul and FONIX MOBILE

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

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

Diversification Opportunities for Data Modul and FONIX MOBILE

0.06

Correlation Coefficient

Data Modul  FONIX MOBILE

Significant diversification

The 3 months correlation between Data and FONIX is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Data Modul 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 Data Modul 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 Data Modul 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 Data Modul i.e., Data Modul and FONIX MOBILE go up and down completely randomly.

Pair Corralation between Data Modul and FONIX MOBILE

Assuming the 90 days trading horizon Data Modul AG is expected to generate 1.23 times more return on investment than FONIX MOBILE. However, Data Modul is 1.23 times more volatile than FONIX MOBILE PLC. It trades about 0.08 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  2,089  in Data Modul AG on April 26, 2025 and sell it today you would earn a total of  191.00  from holding Data Modul AG or generate 9.14% return on investment over 90 days.

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

Data Modul AG  vs.  FONIX MOBILE PLC

Data Modul AG

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Data Modul AG are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain primary indicators, Data Modul may actually be approaching a critical reversion point that can send shares even higher in August 2025.

FONIX MOBILE PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days FONIX MOBILE PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady 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 Data Modul and FONIX MOBILE

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