Correlation Between X Fab and Impulse Fitness
Can any of the company-specific risk be diversified away by investing in both X Fab and Impulse Fitness 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 Impulse Fitness 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 Impulse Fitness Solutions, you can compare the effects of market volatilities on X Fab and Impulse Fitness 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 Impulse Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of X Fab and Impulse Fitness.
Diversification Opportunities for X Fab and Impulse Fitness
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between XFAB and Impulse is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding X Fab Silicon and Impulse Fitness Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impulse Fitness Solutions 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 Impulse Fitness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impulse Fitness Solutions has no effect on the direction of X Fab i.e., X Fab and Impulse Fitness go up and down completely randomly.
Pair Corralation between X Fab and Impulse Fitness
Assuming the 90 days trading horizon X Fab Silicon is expected to generate 1.22 times more return on investment than Impulse Fitness. However, X Fab is 1.22 times more volatile than Impulse Fitness Solutions. It trades about -0.09 of its potential returns per unit of risk. Impulse Fitness Solutions is currently generating about -0.11 per unit of risk. If you would invest 742.00 in X Fab Silicon on September 1, 2024 and sell it today you would lose (292.00) from holding X Fab Silicon or give up 39.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
X Fab Silicon vs. Impulse Fitness Solutions
Performance |
| Timeline |
| X Fab Silicon |
| Impulse Fitness Solutions |
X Fab and Impulse Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X Fab and Impulse Fitness
The main advantage of trading using opposite X Fab and Impulse Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X Fab position performs unexpectedly, Impulse Fitness 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 Impulse Fitness will offset losses from the drop in Impulse Fitness' 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 |
| Impulse Fitness vs. Trigano SA | Impulse Fitness vs. Bonduelle SCA | Impulse Fitness vs. Imerys SA | Impulse Fitness vs. Manitou BF 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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