Correlation Between X Fab and Hitechpros
Can any of the company-specific risk be diversified away by investing in both X Fab and Hitechpros 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 Hitechpros 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 Hitechpros, you can compare the effects of market volatilities on X Fab and Hitechpros 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 Hitechpros. Check out your portfolio center. Please also check ongoing floating volatility patterns of X Fab and Hitechpros.
Diversification Opportunities for X Fab and Hitechpros
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between XFAB and Hitechpros is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding X Fab Silicon and Hitechpros in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hitechpros 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 Hitechpros. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hitechpros has no effect on the direction of X Fab i.e., X Fab and Hitechpros go up and down completely randomly.
Pair Corralation between X Fab and Hitechpros
Assuming the 90 days trading horizon X Fab Silicon is expected to generate 1.69 times more return on investment than Hitechpros. However, X Fab is 1.69 times more volatile than Hitechpros. It trades about 0.12 of its potential returns per unit of risk. Hitechpros is currently generating about -0.1 per unit of risk. If you would invest 463.00 in X Fab Silicon on September 12, 2024 and sell it today you would earn a total of 37.00 from holding X Fab Silicon or generate 7.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
X Fab Silicon vs. Hitechpros
Performance |
| Timeline |
| X Fab Silicon |
| Hitechpros |
X Fab and Hitechpros Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X Fab and Hitechpros
The main advantage of trading using opposite X Fab and Hitechpros positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X Fab position performs unexpectedly, Hitechpros 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 Hitechpros will offset losses from the drop in Hitechpros' long position.| X Fab vs. Groupe Guillin SA | X Fab vs. Stef SA | X Fab vs. SA Catana Group | X Fab vs. Jacquet Metal Service |
| Hitechpros vs. Groupe Guillin SA | Hitechpros vs. Stef SA | Hitechpros vs. SA Catana Group | Hitechpros vs. Jacquet Metal Service |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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