Correlation Between TOREX SEMICONDUCTOR and X FAB
Can any of the company-specific risk be diversified away by investing in both TOREX SEMICONDUCTOR 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 TOREX SEMICONDUCTOR and X FAB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TOREX SEMICONDUCTOR LTD and X FAB Silicon Foundries, you can compare the effects of market volatilities on TOREX SEMICONDUCTOR 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 TOREX SEMICONDUCTOR with a short position of X FAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of TOREX SEMICONDUCTOR and X FAB.
Diversification Opportunities for TOREX SEMICONDUCTOR and X FAB
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TOREX and XFB is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding TOREX SEMICONDUCTOR LTD 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 TOREX SEMICONDUCTOR 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 TOREX SEMICONDUCTOR LTD 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 TOREX SEMICONDUCTOR i.e., TOREX SEMICONDUCTOR and X FAB go up and down completely randomly.
Pair Corralation between TOREX SEMICONDUCTOR and X FAB
Assuming the 90 days horizon TOREX SEMICONDUCTOR LTD is expected to under-perform the X FAB. In addition to that, TOREX SEMICONDUCTOR is 1.01 times more volatile than X FAB Silicon Foundries. It trades about -0.06 of its total potential returns per unit of risk. X FAB Silicon Foundries is currently generating about -0.03 per unit of volatility. If you would invest 885.00 in X FAB Silicon Foundries on November 7, 2024 and sell it today you would lose (393.00) from holding X FAB Silicon Foundries or give up 44.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TOREX SEMICONDUCTOR LTD vs. X FAB Silicon Foundries
Performance |
| Timeline |
| TOREX SEMICONDUCTOR LTD |
| X FAB Silicon |
TOREX SEMICONDUCTOR and X FAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TOREX SEMICONDUCTOR and X FAB
The main advantage of trading using opposite TOREX SEMICONDUCTOR and X FAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TOREX SEMICONDUCTOR 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.| TOREX SEMICONDUCTOR vs. FIREWEED METALS P | TOREX SEMICONDUCTOR vs. Jacquet Metal Service | TOREX SEMICONDUCTOR vs. Universal Entertainment | TOREX SEMICONDUCTOR vs. PARKEN Sport Entertainment |
| X FAB vs. MOLSON RS BEVERAGE | X FAB vs. CAL MAINE FOODS | X FAB vs. GBS Software AG | X FAB vs. Magic Software Enterprises |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |