Correlation Between Signaux Girod and X Fab
Can any of the company-specific risk be diversified away by investing in both Signaux Girod 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 Signaux Girod and X Fab into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Signaux Girod and X Fab Silicon, you can compare the effects of market volatilities on Signaux Girod 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 Signaux Girod with a short position of X Fab. Check out your portfolio center. Please also check ongoing floating volatility patterns of Signaux Girod and X Fab.
Diversification Opportunities for Signaux Girod and X Fab
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Signaux and XFAB is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Signaux Girod and X Fab Silicon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X Fab Silicon and Signaux Girod 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 Signaux Girod 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 Signaux Girod i.e., Signaux Girod and X Fab go up and down completely randomly.
Pair Corralation between Signaux Girod and X Fab
Assuming the 90 days trading horizon Signaux Girod is expected to generate 0.8 times more return on investment than X Fab. However, Signaux Girod is 1.24 times less risky than X Fab. It trades about -0.1 of its potential returns per unit of risk. X Fab Silicon is currently generating about -0.09 per unit of risk. If you would invest 1,920 in Signaux Girod on September 1, 2024 and sell it today you would lose (520.00) from holding Signaux Girod or give up 27.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.24% |
| Values | Daily Returns |
Signaux Girod vs. X Fab Silicon
Performance |
| Timeline |
| Signaux Girod |
| X Fab Silicon |
Signaux Girod and X Fab Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Signaux Girod and X Fab
The main advantage of trading using opposite Signaux Girod and X Fab positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Signaux Girod 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.| Signaux Girod vs. X Fab Silicon | Signaux Girod vs. BEBO Health SA | Signaux Girod vs. Covivio Hotels | Signaux Girod vs. Bilendi |
| X Fab vs. Chargeurs SA | X Fab vs. Straumann Holding AG | X Fab vs. Manitou BF SA | X Fab vs. Amundi Index Solutions |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |