Correlation Between X FAB and Lords Grp
Can any of the company-specific risk be diversified away by investing in both X FAB and Lords Grp 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 Lords Grp 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 Lords Grp Trading, you can compare the effects of market volatilities on X FAB and Lords Grp 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 Lords Grp. Check out your portfolio center. Please also check ongoing floating volatility patterns of X FAB and Lords Grp.
Diversification Opportunities for X FAB and Lords Grp
Modest diversification
The 3 months correlation between 0ROZ and Lords is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding X FAB Silicon Foundries and Lords Grp Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lords Grp Trading 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 Lords Grp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lords Grp Trading has no effect on the direction of X FAB i.e., X FAB and Lords Grp go up and down completely randomly.
Pair Corralation between X FAB and Lords Grp
Assuming the 90 days trading horizon X FAB Silicon Foundries is expected to generate 1.23 times more return on investment than Lords Grp. However, X FAB is 1.23 times more volatile than Lords Grp Trading. It trades about -0.08 of its potential returns per unit of risk. Lords Grp Trading is currently generating about -0.1 per unit of risk. If you would invest 523.00 in X FAB Silicon Foundries on September 3, 2024 and sell it today you would lose (87.00) from holding X FAB Silicon Foundries or give up 16.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
X FAB Silicon Foundries vs. Lords Grp Trading
Performance |
| Timeline |
| X FAB Silicon |
| Lords Grp Trading |
X FAB and Lords Grp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X FAB and Lords Grp
The main advantage of trading using opposite X FAB and Lords Grp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X FAB position performs unexpectedly, Lords Grp 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 Lords Grp will offset losses from the drop in Lords Grp's long position.| X FAB vs. Smithson Investment Trust | X FAB vs. DXC Technology Co | X FAB vs. Lowland Investment Co | X FAB vs. The Investment |
| Lords Grp vs. Zoom Video Communications | Lords Grp vs. JD Sports Fashion | Lords Grp vs. X FAB Silicon Foundries | Lords Grp vs. Ecofin Global Utilities |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |