Correlation Between FNP Technologies and X Fab
Can any of the company-specific risk be diversified away by investing in both FNP 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 FNP 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 FNP Technologies SA and X Fab Silicon, you can compare the effects of market volatilities on FNP 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 FNP Technologies with a short position of X Fab. Check out your portfolio center. Please also check ongoing floating volatility patterns of FNP Technologies and X Fab.
Diversification Opportunities for FNP Technologies and X Fab
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FNP and XFAB is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding FNP 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 FNP 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 FNP 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 FNP Technologies i.e., FNP Technologies and X Fab go up and down completely randomly.
Pair Corralation between FNP Technologies and X Fab
If you would invest 437.00 in X Fab Silicon on September 1, 2024 and sell it today you would earn a total of 13.00 from holding X Fab Silicon or generate 2.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FNP Technologies SA vs. X Fab Silicon
Performance |
| Timeline |
| FNP Technologies |
| X Fab Silicon |
FNP Technologies and X Fab Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FNP Technologies and X Fab
The main advantage of trading using opposite FNP Technologies and X Fab positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FNP 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.| FNP Technologies vs. Novatech Industries SA | FNP Technologies vs. Metalliance SA | FNP Technologies vs. Bilendi | FNP Technologies vs. CMG Cleantech SA |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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