Correlation Between QUICKSTEP HLDGS and X FAB
Can any of the company-specific risk be diversified away by investing in both QUICKSTEP HLDGS 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 QUICKSTEP HLDGS and X FAB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between QUICKSTEP HLDGS and X FAB Silicon Foundries, you can compare the effects of market volatilities on QUICKSTEP HLDGS 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 QUICKSTEP HLDGS with a short position of X FAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of QUICKSTEP HLDGS and X FAB.
Diversification Opportunities for QUICKSTEP HLDGS and X FAB
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between QUICKSTEP and XFB is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding QUICKSTEP HLDGS 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 QUICKSTEP HLDGS 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 QUICKSTEP HLDGS 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 QUICKSTEP HLDGS i.e., QUICKSTEP HLDGS and X FAB go up and down completely randomly.
Pair Corralation between QUICKSTEP HLDGS and X FAB
Assuming the 90 days trading horizon QUICKSTEP HLDGS is expected to generate 3.59 times more return on investment than X FAB. However, QUICKSTEP HLDGS is 3.59 times more volatile than X FAB Silicon Foundries. It trades about 0.1 of its potential returns per unit of risk. X FAB Silicon Foundries is currently generating about -0.01 per unit of risk. If you would invest 14.00 in QUICKSTEP HLDGS on November 3, 2024 and sell it today you would earn a total of 16.00 from holding QUICKSTEP HLDGS or generate 114.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
QUICKSTEP HLDGS vs. X FAB Silicon Foundries
Performance |
| Timeline |
| QUICKSTEP HLDGS |
| X FAB Silicon |
QUICKSTEP HLDGS and X FAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QUICKSTEP HLDGS and X FAB
The main advantage of trading using opposite QUICKSTEP HLDGS and X FAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QUICKSTEP HLDGS 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.| QUICKSTEP HLDGS vs. MARKET VECTR RETAIL | QUICKSTEP HLDGS vs. SPORTING | QUICKSTEP HLDGS vs. PRECISION DRILLING P | QUICKSTEP HLDGS vs. SPORT LISBOA E |
| X FAB vs. SIVERS SEMICONDUCTORS AB | X FAB vs. NorAm Drilling AS | X FAB vs. Volkswagen AG | X FAB vs. Darden Restaurants |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |