Correlation Between Sabien Technology and X FAB
Can any of the company-specific risk be diversified away by investing in both Sabien Technology 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 Sabien Technology and X FAB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabien Technology Group and X FAB Silicon Foundries, you can compare the effects of market volatilities on Sabien Technology 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 Sabien Technology with a short position of X FAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabien Technology and X FAB.
Diversification Opportunities for Sabien Technology and X FAB
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sabien and 0ROZ is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Sabien Technology Group 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 Sabien Technology 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 Sabien Technology Group 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 Sabien Technology i.e., Sabien Technology and X FAB go up and down completely randomly.
Pair Corralation between Sabien Technology and X FAB
Assuming the 90 days trading horizon Sabien Technology Group is expected to under-perform the X FAB. In addition to that, Sabien Technology is 1.1 times more volatile than X FAB Silicon Foundries. It trades about -0.2 of its total potential returns per unit of risk. X FAB Silicon Foundries is currently generating about -0.04 per unit of volatility. If you would invest 441.00 in X FAB Silicon Foundries on August 30, 2024 and sell it today you would lose (14.00) from holding X FAB Silicon Foundries or give up 3.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabien Technology Group vs. X FAB Silicon Foundries
Performance |
| Timeline |
| Sabien Technology |
| X FAB Silicon |
Sabien Technology and X FAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabien Technology and X FAB
The main advantage of trading using opposite Sabien Technology and X FAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabien Technology 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.| Sabien Technology vs. Samsung Electronics Co | Sabien Technology vs. Samsung Electronics Co | Sabien Technology vs. Toyota Motor Corp | Sabien Technology vs. Reliance Industries Ltd |
| X FAB vs. Lendinvest PLC | X FAB vs. Neometals | X FAB vs. Albion Technology General | X FAB vs. Jupiter Fund Management |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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