Correlation Between X FAB and Ceiba Investments
Can any of the company-specific risk be diversified away by investing in both X FAB and Ceiba Investments 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 X FAB and Ceiba Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between X FAB Silicon Foundries and Ceiba Investments, you can compare the effects of market volatilities on X FAB and Ceiba Investments 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 X FAB with a short position of Ceiba Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of X FAB and Ceiba Investments.
Diversification Opportunities for X FAB and Ceiba Investments
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between 0ROZ and Ceiba is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding X FAB Silicon Foundries and Ceiba Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ceiba Investments and X FAB 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 X FAB Silicon Foundries are associated (or correlated) with Ceiba Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ceiba Investments has no effect on the direction of X FAB i.e., X FAB and Ceiba Investments go up and down completely randomly.
Pair Corralation between X FAB and Ceiba Investments
Assuming the 90 days trading horizon X FAB Silicon Foundries is expected to under-perform the Ceiba Investments. But the stock apears to be less risky and, when comparing its historical volatility, X FAB Silicon Foundries is 5.09 times less risky than Ceiba Investments. The stock trades about -0.08 of its potential returns per unit of risk. The Ceiba Investments is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3,600 in Ceiba Investments on September 12, 2024 and sell it today you would lose (1,200) from holding Ceiba Investments or give up 33.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.81% |
| Values | Daily Returns |
X FAB Silicon Foundries vs. Ceiba Investments
Performance |
| Timeline |
| X FAB Silicon |
| Ceiba Investments |
X FAB and Ceiba Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X FAB and Ceiba Investments
The main advantage of trading using opposite X FAB and Ceiba Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X FAB position performs unexpectedly, Ceiba Investments 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 Ceiba Investments will offset losses from the drop in Ceiba Investments' long position.| X FAB vs. Hong Kong Land | X FAB vs. Neometals | X FAB vs. Coor Service Management | X FAB vs. Fidelity Sustainable USD |
| Ceiba Investments vs. X FAB Silicon Foundries | Ceiba Investments vs. Neometals | Ceiba Investments vs. Aeorema Communications Plc | Ceiba Investments vs. Sealed Air Corp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |