Correlation Between FONIX MOBILE and Compugroup Medical

Can any of the company-specific risk be diversified away by investing in both FONIX MOBILE and Compugroup Medical 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 Compugroup Medical 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 Compugroup Medical SE, you can compare the effects of market volatilities on FONIX MOBILE and Compugroup Medical 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 Compugroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of FONIX MOBILE and Compugroup Medical.

Diversification Opportunities for FONIX MOBILE and Compugroup Medical

0.12

Correlation Coefficient

FONIX MOBILE  Compugroup Medical

Average diversification

The 3 months correlation between FONIX and Compugroup is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding FONIX MOBILE PLC and Compugroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compugroup Medical 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 Compugroup Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compugroup Medical has no effect on the direction of FONIX MOBILE i.e., FONIX MOBILE and Compugroup Medical go up and down completely randomly.

Pair Corralation between FONIX MOBILE and Compugroup Medical

Assuming the 90 days horizon FONIX MOBILE PLC is expected to generate 3.06 times more return on investment than Compugroup Medical. However, FONIX MOBILE is 3.06 times more volatile than Compugroup Medical SE. It trades about 0.43 of its potential returns per unit of risk. Compugroup Medical SE is currently generating about 0.02 per unit of risk. If you would invest  216.00  in FONIX MOBILE PLC on February 8, 2025 and sell it today you would earn a total of  54.00  from holding FONIX MOBILE PLC or generate 25.0% return on investment over 90 days.

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

FONIX MOBILE PLC  vs.  Compugroup Medical SE

FONIX MOBILE PLC

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in FONIX MOBILE PLC are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, FONIX MOBILE may actually be approaching a critical reversion point that can send shares even higher in June 2025.

Compugroup Medical

Risk-Adjusted Performance

Very Weak

Over the last 90 days Compugroup Medical SE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Compugroup Medical is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with FONIX MOBILE and Compugroup Medical

The main advantage of trading using opposite FONIX MOBILE and Compugroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FONIX MOBILE position performs unexpectedly, Compugroup Medical 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 Compugroup Medical will offset losses from the drop in Compugroup Medical's long position.

The idea behind FONIX MOBILE PLC and Compugroup Medical 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.

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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.