Correlation Between Exail Technologies and X Fab
Can any of the company-specific risk be diversified away by investing in both Exail Technologies 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 Exail Technologies and X Fab into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exail Technologies SA and X Fab Silicon, you can compare the effects of market volatilities on Exail Technologies 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 Exail Technologies with a short position of X Fab. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exail Technologies and X Fab.
Diversification Opportunities for Exail Technologies and X Fab
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Exail and XFAB is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Exail Technologies SA 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 Exail Technologies 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 Exail Technologies SA 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 Exail Technologies i.e., Exail Technologies and X Fab go up and down completely randomly.
Pair Corralation between Exail Technologies and X Fab
Assuming the 90 days trading horizon Exail Technologies SA is expected to generate 1.05 times more return on investment than X Fab. However, Exail Technologies is 1.05 times more volatile than X Fab Silicon. It trades about -0.03 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 2,255 in Exail Technologies SA on September 1, 2024 and sell it today you would lose (495.00) from holding Exail Technologies SA or give up 21.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exail Technologies SA vs. X Fab Silicon
Performance |
| Timeline |
| Exail Technologies |
| X Fab Silicon |
Exail Technologies and X Fab Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exail Technologies and X Fab
The main advantage of trading using opposite Exail Technologies and X Fab positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exail Technologies 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.| Exail Technologies vs. ISPD Network SA | Exail Technologies vs. Gaztransport Technigaz SAS | Exail Technologies vs. Covivio Hotels | Exail Technologies vs. Fill Up Media |
| 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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