Correlation Between X FAB and Sabien Technology
Can any of the company-specific risk be diversified away by investing in both X FAB and Sabien Technology 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 Sabien Technology 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 Sabien Technology Group, you can compare the effects of market volatilities on X FAB and Sabien Technology 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 Sabien Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of X FAB and Sabien Technology.
Diversification Opportunities for X FAB and Sabien Technology
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 0ROZ and Sabien is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding X FAB Silicon Foundries and Sabien Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabien Technology 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 Sabien Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabien Technology has no effect on the direction of X FAB i.e., X FAB and Sabien Technology go up and down completely randomly.
Pair Corralation between X FAB and Sabien Technology
Assuming the 90 days trading horizon X FAB Silicon Foundries is expected to generate 0.91 times more return on investment than Sabien Technology. However, X FAB Silicon Foundries is 1.1 times less risky than Sabien Technology. It trades about -0.04 of its potential returns per unit of risk. Sabien Technology Group is currently generating about -0.2 per unit of risk. If you would invest 441.00 in X FAB Silicon Foundries on August 30, 2024 and sell it today you would lose (14.00) from holding X FAB Silicon Foundries or give up 3.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
X FAB Silicon Foundries vs. Sabien Technology Group
Performance |
| Timeline |
| X FAB Silicon |
| Sabien Technology |
X FAB and Sabien Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X FAB and Sabien Technology
The main advantage of trading using opposite X FAB and Sabien Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X FAB position performs unexpectedly, Sabien Technology 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 Sabien Technology will offset losses from the drop in Sabien Technology's long position.| X FAB vs. Lendinvest PLC | X FAB vs. Neometals | X FAB vs. Albion Technology General | X FAB vs. Jupiter Fund Management |
| Sabien Technology vs. Samsung Electronics Co | Sabien Technology vs. Samsung Electronics Co | Sabien Technology vs. Toyota Motor Corp | Sabien Technology vs. Reliance Industries Ltd |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |