Correlation Between Ion Beam and X FAB
Can any of the company-specific risk be diversified away by investing in both Ion Beam and X FAB 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 Ion Beam and X FAB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ion Beam Applications and X FAB Silicon Foundries, you can compare the effects of market volatilities on Ion Beam and X FAB 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 Ion Beam with a short position of X FAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ion Beam and X FAB.
Diversification Opportunities for Ion Beam and X FAB
Good diversification
The 3 months correlation between Ion and 0ROZ is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Ion Beam Applications and X FAB Silicon Foundries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X FAB Silicon and Ion Beam 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 Ion Beam Applications are associated (or correlated) with X FAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X FAB Silicon has no effect on the direction of Ion Beam i.e., Ion Beam and X FAB go up and down completely randomly.
Pair Corralation between Ion Beam and X FAB
Assuming the 90 days trading horizon Ion Beam Applications is expected to generate 1.02 times more return on investment than X FAB. However, Ion Beam is 1.02 times more volatile than X FAB Silicon Foundries. It trades about 0.0 of its potential returns per unit of risk. X FAB Silicon Foundries is currently generating about -0.03 per unit of risk. If you would invest 1,522 in Ion Beam Applications on September 3, 2024 and sell it today you would lose (148.00) from holding Ion Beam Applications or give up 9.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.42% |
| Values | Daily Returns |
Ion Beam Applications vs. X FAB Silicon Foundries
Performance |
| Timeline |
| Ion Beam Applications |
| X FAB Silicon |
Ion Beam and X FAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ion Beam and X FAB
The main advantage of trading using opposite Ion Beam and X FAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ion Beam position performs unexpectedly, X FAB 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 X FAB will offset losses from the drop in X FAB's long position.| Ion Beam vs. Catalyst Media Group | Ion Beam vs. CATLIN GROUP | Ion Beam vs. RTW Venture Fund | Ion Beam vs. Secure Property Development |
| X FAB vs. Smithson Investment Trust | X FAB vs. DXC Technology Co | X FAB vs. Lowland Investment Co | X FAB vs. The 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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