Correlation Between X Fab and GECI International
Can any of the company-specific risk be diversified away by investing in both X Fab and GECI International 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 GECI International 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 GECI International SA, you can compare the effects of market volatilities on X Fab and GECI International 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 GECI International. Check out your portfolio center. Please also check ongoing floating volatility patterns of X Fab and GECI International.
Diversification Opportunities for X Fab and GECI International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between XFAB and GECI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding X Fab Silicon and GECI International SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GECI International 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 GECI International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GECI International has no effect on the direction of X Fab i.e., X Fab and GECI International go up and down completely randomly.
Pair Corralation between X Fab and GECI International
If you would invest 0.00 in GECI International SA on October 13, 2024 and sell it today you would earn a total of 0.00 from holding GECI International SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.2% |
| Values | Daily Returns |
X Fab Silicon vs. GECI International SA
Performance |
| Timeline |
| X Fab Silicon |
| GECI International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
X Fab and GECI International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X Fab and GECI International
The main advantage of trading using opposite X Fab and GECI International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X Fab position performs unexpectedly, GECI International 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 GECI International will offset losses from the drop in GECI International's long position.The idea behind X Fab Silicon and GECI International 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.| GECI International vs. Soditech SA | GECI International vs. Media 6 SA | GECI International vs. Fill Up Media | GECI International vs. ZCCM Investments Holdings |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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