Correlation Between NURAN WIRELESS and X FAB
Can any of the company-specific risk be diversified away by investing in both NURAN WIRELESS 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 NURAN WIRELESS and X FAB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NURAN WIRELESS INC and X FAB Silicon Foundries, you can compare the effects of market volatilities on NURAN WIRELESS 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 NURAN WIRELESS with a short position of X FAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of NURAN WIRELESS and X FAB.
Diversification Opportunities for NURAN WIRELESS and X FAB
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between NURAN and XFB is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding NURAN WIRELESS INC 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 NURAN WIRELESS 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 NURAN WIRELESS INC 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 NURAN WIRELESS i.e., NURAN WIRELESS and X FAB go up and down completely randomly.
Pair Corralation between NURAN WIRELESS and X FAB
Assuming the 90 days trading horizon NURAN WIRELESS INC is expected to under-perform the X FAB. In addition to that, NURAN WIRELESS is 1.3 times more volatile than X FAB Silicon Foundries. It trades about -0.14 of its total potential returns per unit of risk. X FAB Silicon Foundries is currently generating about -0.01 per unit of volatility. If you would invest 537.00 in X FAB Silicon Foundries on October 14, 2024 and sell it today you would lose (27.00) from holding X FAB Silicon Foundries or give up 5.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NURAN WIRELESS INC vs. X FAB Silicon Foundries
Performance |
| Timeline |
| NURAN WIRELESS INC |
| X FAB Silicon |
NURAN WIRELESS and X FAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NURAN WIRELESS and X FAB
The main advantage of trading using opposite NURAN WIRELESS and X FAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NURAN WIRELESS 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.| NURAN WIRELESS vs. CSSC Offshore Marine | NURAN WIRELESS vs. JLF INVESTMENT | NURAN WIRELESS vs. Gladstone Investment | NURAN WIRELESS vs. PT Wintermar Offshore |
| X FAB vs. CENTURIA OFFICE REIT | X FAB vs. 24SEVENOFFICE GROUP AB | X FAB vs. NURAN WIRELESS INC | X FAB vs. INDO RAMA SYNTHETIC |
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.
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