Correlation Between FONIX MOBILE and INTERCONT HOTELS

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

Diversification Opportunities for FONIX MOBILE and INTERCONT HOTELS

0.0

Correlation Coefficient

FONIX MOBILE  INTERCONT HOTELS

Pay attention - limited upside

The 3 months correlation between FONIX and INTERCONT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FONIX MOBILE PLC and INTERCONT HOTELS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERCONT HOTELS 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 INTERCONT HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTERCONT HOTELS has no effect on the direction of FONIX MOBILE i.e., FONIX MOBILE and INTERCONT HOTELS go up and down completely randomly.

Pair Corralation between FONIX MOBILE and INTERCONT HOTELS

Assuming the 90 days horizon FONIX MOBILE PLC is expected to under-perform the INTERCONT HOTELS. In addition to that, FONIX MOBILE is 1.0 times more volatile than INTERCONT HOTELS. It trades about -0.05 of its total potential returns per unit of risk. INTERCONT HOTELS is currently generating about -0.05 per unit of volatility. If you would invest  10,800  in INTERCONT HOTELS on May 19, 2025 and sell it today you would lose (700.00) from holding INTERCONT HOTELS or give up 6.48% of portfolio value over 90 days.

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

FONIX MOBILE PLC  vs.  INTERCONT HOTELS

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 nearly stable basic indicators, FONIX MOBILE is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

INTERCONT HOTELS

Risk-Adjusted Performance

Weakest

Over the last 90 days INTERCONT HOTELS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, INTERCONT HOTELS 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 INTERCONT HOTELS

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

The idea behind FONIX MOBILE PLC and INTERCONT HOTELS 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.