Correlation Between Fonix Mobile and BioNTech

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

Diversification Opportunities for Fonix Mobile and BioNTech

-0.29

Correlation Coefficient

Fonix Mobile  BioNTech

Very good diversification

The 3 months correlation between Fonix and BioNTech is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Fonix Mobile plc and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE 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 BioNTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioNTech SE has no effect on the direction of Fonix Mobile i.e., Fonix Mobile and BioNTech go up and down completely randomly.

Pair Corralation between Fonix Mobile and BioNTech

Assuming the 90 days trading horizon Fonix Mobile plc is expected to under-perform the BioNTech. But the stock apears to be less risky and, when comparing its historical volatility, Fonix Mobile plc is 1.09 times less risky than BioNTech. The stock trades about -0.07 of its potential returns per unit of risk. The BioNTech SE is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  11,660  in BioNTech SE on September 13, 2024 and sell it today you would earn a total of  255.00  from holding BioNTech SE or generate 2.19% return on investment over 90 days.

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

Fonix Mobile plc  vs.  BioNTech SE

Fonix Mobile plc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fonix Mobile plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

BioNTech SE

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in BioNTech SE are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent essential indicators, BioNTech is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Fonix Mobile and BioNTech

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

The idea behind Fonix Mobile plc and BioNTech 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.

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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.