Correlation Between Grupo Carso and X-FAB Silicon
Can any of the company-specific risk be diversified away by investing in both Grupo Carso and X-FAB Silicon 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 Grupo Carso and X-FAB Silicon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Carso SAB and X FAB Silicon Foundries, you can compare the effects of market volatilities on Grupo Carso and X-FAB Silicon 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 Grupo Carso with a short position of X-FAB Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Carso and X-FAB Silicon.
Diversification Opportunities for Grupo Carso and X-FAB Silicon
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Grupo and X-FAB is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Carso SAB 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 Grupo Carso 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 Grupo Carso SAB are associated (or correlated) with X-FAB Silicon. 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 Grupo Carso i.e., Grupo Carso and X-FAB Silicon go up and down completely randomly.
Pair Corralation between Grupo Carso and X-FAB Silicon
Assuming the 90 days horizon Grupo Carso SAB is expected to generate 1.34 times more return on investment than X-FAB Silicon. However, Grupo Carso is 1.34 times more volatile than X FAB Silicon Foundries. It trades about 0.08 of its potential returns per unit of risk. X FAB Silicon Foundries is currently generating about -0.02 per unit of risk. If you would invest 191.00 in Grupo Carso SAB on September 3, 2024 and sell it today you would earn a total of 384.00 from holding Grupo Carso SAB or generate 201.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Carso SAB vs. X FAB Silicon Foundries
Performance |
| Timeline |
| Grupo Carso SAB |
| X FAB Silicon |
Grupo Carso and X-FAB Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Carso and X-FAB Silicon
The main advantage of trading using opposite Grupo Carso and X-FAB Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Carso position performs unexpectedly, X-FAB Silicon 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 Silicon will offset losses from the drop in X-FAB Silicon's long position.| Grupo Carso vs. Cleanaway Waste Management | Grupo Carso vs. TAL Education Group | Grupo Carso vs. Major Drilling Group | Grupo Carso vs. STRAYER EDUCATION |
| X-FAB Silicon vs. Apple Inc | X-FAB Silicon vs. Apple Inc | X-FAB Silicon vs. Apple Inc | X-FAB Silicon vs. Apple Inc |
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.
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