Correlation Between Khiron Life and X-FAB Silicon
Can any of the company-specific risk be diversified away by investing in both Khiron Life 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 Khiron Life 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 Khiron Life Sciences and X FAB Silicon Foundries, you can compare the effects of market volatilities on Khiron Life 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 Khiron Life with a short position of X-FAB Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Khiron Life and X-FAB Silicon.
Diversification Opportunities for Khiron Life and X-FAB Silicon
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Khiron and X-FAB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Khiron Life Sciences 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 Khiron Life 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 Khiron Life Sciences 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 Khiron Life i.e., Khiron Life and X-FAB Silicon go up and down completely randomly.
Pair Corralation between Khiron Life and X-FAB Silicon
If you would invest 2.16 in Khiron Life Sciences on October 17, 2024 and sell it today you would earn a total of 0.00 from holding Khiron Life Sciences or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Khiron Life Sciences vs. X FAB Silicon Foundries
Performance |
| Timeline |
| Khiron Life Sciences |
| X FAB Silicon |
Khiron Life and X-FAB Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Khiron Life and X-FAB Silicon
The main advantage of trading using opposite Khiron Life and X-FAB Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Khiron Life 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.| Khiron Life vs. Transport International Holdings | Khiron Life vs. Sims Metal Management | Khiron Life vs. Columbia Sportswear | Khiron Life vs. DICKS Sporting Goods |
| X-FAB Silicon vs. Mount Gibson Iron | X-FAB Silicon vs. Khiron Life Sciences | X-FAB Silicon vs. Yuexiu Transport Infrastructure | X-FAB Silicon vs. GREENX METALS 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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