Correlation Between X Fab and Invibes Advertising
Can any of the company-specific risk be diversified away by investing in both X Fab and Invibes Advertising 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 Invibes Advertising 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 Invibes Advertising NV, you can compare the effects of market volatilities on X Fab and Invibes Advertising 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 Invibes Advertising. Check out your portfolio center. Please also check ongoing floating volatility patterns of X Fab and Invibes Advertising.
Diversification Opportunities for X Fab and Invibes Advertising
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between XFAB and Invibes is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding X Fab Silicon and Invibes Advertising NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invibes Advertising 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 Invibes Advertising. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invibes Advertising has no effect on the direction of X Fab i.e., X Fab and Invibes Advertising go up and down completely randomly.
Pair Corralation between X Fab and Invibes Advertising
Assuming the 90 days trading horizon X Fab Silicon is expected to generate 1.53 times more return on investment than Invibes Advertising. However, X Fab is 1.53 times more volatile than Invibes Advertising NV. It trades about 0.12 of its potential returns per unit of risk. Invibes Advertising NV is currently generating about -0.49 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
X Fab Silicon vs. Invibes Advertising NV
Performance |
| Timeline |
| X Fab Silicon |
| Invibes Advertising |
X Fab and Invibes Advertising Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X Fab and Invibes Advertising
The main advantage of trading using opposite X Fab and Invibes Advertising positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X Fab position performs unexpectedly, Invibes Advertising 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 Invibes Advertising will offset losses from the drop in Invibes Advertising's 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 |
| Invibes Advertising vs. Streamwide | Invibes Advertising vs. Claranova SE | Invibes Advertising vs. SA Catana Group | Invibes Advertising vs. Wallix Group 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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