Correlation Between Mount Gibson and X-FAB Silicon
Can any of the company-specific risk be diversified away by investing in both Mount Gibson 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 Mount Gibson 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 Mount Gibson Iron and X FAB Silicon Foundries, you can compare the effects of market volatilities on Mount Gibson 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 Mount Gibson with a short position of X-FAB Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mount Gibson and X-FAB Silicon.
Diversification Opportunities for Mount Gibson and X-FAB Silicon
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mount and X-FAB is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Mount Gibson Iron 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 Mount Gibson 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 Mount Gibson Iron 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 Mount Gibson i.e., Mount Gibson and X-FAB Silicon go up and down completely randomly.
Pair Corralation between Mount Gibson and X-FAB Silicon
Assuming the 90 days horizon Mount Gibson Iron is expected to under-perform the X-FAB Silicon. But the stock apears to be less risky and, when comparing its historical volatility, Mount Gibson Iron is 2.03 times less risky than X-FAB Silicon. The stock trades about -0.24 of its potential returns per unit of risk. The X FAB Silicon Foundries is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 491.00 in X FAB Silicon Foundries on October 17, 2024 and sell it today you would lose (3.00) from holding X FAB Silicon Foundries or give up 0.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mount Gibson Iron vs. X FAB Silicon Foundries
Performance |
| Timeline |
| Mount Gibson Iron |
| X FAB Silicon |
Mount Gibson and X-FAB Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mount Gibson and X-FAB Silicon
The main advantage of trading using opposite Mount Gibson and X-FAB Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mount Gibson 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.| Mount Gibson vs. GWILLI FOOD | Mount Gibson vs. Keck Seng Investments | Mount Gibson vs. CDL INVESTMENT | Mount Gibson vs. ECHO INVESTMENT ZY |
| 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| CEOs Directory Screen CEOs from public companies around the world |