Correlation Between X Fab and Credit Agricole
Can any of the company-specific risk be diversified away by investing in both X Fab and Credit Agricole 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 X Fab and Credit Agricole into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between X Fab Silicon and Credit Agricole SA, you can compare the effects of market volatilities on X Fab and Credit Agricole 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 X Fab with a short position of Credit Agricole. Check out your portfolio center. Please also check ongoing floating volatility patterns of X Fab and Credit Agricole.
Diversification Opportunities for X Fab and Credit Agricole
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between XFAB and Credit is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding X Fab Silicon and Credit Agricole SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Agricole SA and X Fab 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 X Fab Silicon are associated (or correlated) with Credit Agricole. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Agricole SA has no effect on the direction of X Fab i.e., X Fab and Credit Agricole go up and down completely randomly.
Pair Corralation between X Fab and Credit Agricole
Assuming the 90 days trading horizon X Fab Silicon is expected to generate 2.06 times more return on investment than Credit Agricole. However, X Fab is 2.06 times more volatile than Credit Agricole SA. It trades about -0.04 of its potential returns per unit of risk. Credit Agricole SA is currently generating about -0.38 per unit of risk. If you would invest 438.00 in X Fab Silicon on August 30, 2024 and sell it today you would lose (14.00) from holding X Fab Silicon or give up 3.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
X Fab Silicon vs. Credit Agricole SA
Performance |
| Timeline |
| X Fab Silicon |
| Credit Agricole SA |
X Fab and Credit Agricole Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X Fab and Credit Agricole
The main advantage of trading using opposite X Fab and Credit Agricole positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X Fab position performs unexpectedly, Credit Agricole 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 Credit Agricole will offset losses from the drop in Credit Agricole's long position.The idea behind X Fab Silicon and Credit Agricole SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Credit Agricole vs. Societe Generale SA | Credit Agricole vs. BNP Paribas SA | Credit Agricole vs. AXA SA | Credit Agricole vs. Carrefour SA |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |