Correlation Between X Fab and Signaux Girod
Can any of the company-specific risk be diversified away by investing in both X Fab and Signaux Girod 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 Signaux Girod 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 Signaux Girod, you can compare the effects of market volatilities on X Fab and Signaux Girod 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 Signaux Girod. Check out your portfolio center. Please also check ongoing floating volatility patterns of X Fab and Signaux Girod.
Diversification Opportunities for X Fab and Signaux Girod
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between XFAB and Signaux is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding X Fab Silicon and Signaux Girod in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Signaux Girod 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 Signaux Girod. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Signaux Girod has no effect on the direction of X Fab i.e., X Fab and Signaux Girod go up and down completely randomly.
Pair Corralation between X Fab and Signaux Girod
Assuming the 90 days trading horizon X Fab Silicon is expected to generate 1.26 times more return on investment than Signaux Girod. However, X Fab is 1.26 times more volatile than Signaux Girod. It trades about 0.06 of its potential returns per unit of risk. Signaux Girod is currently generating about 0.0 per unit of risk. 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 Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
X Fab Silicon vs. Signaux Girod
Performance |
| Timeline |
| X Fab Silicon |
| Signaux Girod |
X Fab and Signaux Girod Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X Fab and Signaux Girod
The main advantage of trading using opposite X Fab and Signaux Girod positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X Fab position performs unexpectedly, Signaux Girod 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 Signaux Girod will offset losses from the drop in Signaux Girod's long position.| X Fab vs. Chargeurs SA | X Fab vs. Straumann Holding AG | X Fab vs. Manitou BF SA | X Fab vs. Amundi Index Solutions |
| Signaux Girod vs. X Fab Silicon | Signaux Girod vs. BEBO Health SA | Signaux Girod vs. Covivio Hotels | Signaux Girod vs. Bilendi |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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