Correlation Between X Fab and Unifiedpost Group
Can any of the company-specific risk be diversified away by investing in both X Fab and Unifiedpost Group 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 Unifiedpost Group 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 Unifiedpost Group SA, you can compare the effects of market volatilities on X Fab and Unifiedpost Group 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 Unifiedpost Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of X Fab and Unifiedpost Group.
Diversification Opportunities for X Fab and Unifiedpost Group
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between XFAB and Unifiedpost is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding X Fab Silicon and Unifiedpost Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unifiedpost Group 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 Unifiedpost Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unifiedpost Group has no effect on the direction of X Fab i.e., X Fab and Unifiedpost Group go up and down completely randomly.
Pair Corralation between X Fab and Unifiedpost Group
Assuming the 90 days trading horizon X Fab Silicon is expected to generate 1.48 times more return on investment than Unifiedpost Group. However, X Fab is 1.48 times more volatile than Unifiedpost Group SA. It trades about 0.09 of its potential returns per unit of risk. Unifiedpost Group SA is currently generating about -0.01 per unit of risk. If you would invest 478.00 in X Fab Silicon on November 4, 2024 and sell it today you would earn a total of 21.00 from holding X Fab Silicon or generate 4.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
X Fab Silicon vs. Unifiedpost Group SA
Performance |
| Timeline |
| X Fab Silicon |
| Unifiedpost Group |
X Fab and Unifiedpost Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X Fab and Unifiedpost Group
The main advantage of trading using opposite X Fab and Unifiedpost Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X Fab position performs unexpectedly, Unifiedpost Group 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 Unifiedpost Group will offset losses from the drop in Unifiedpost Group's long position.The idea behind X Fab Silicon and Unifiedpost Group 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.| Unifiedpost Group vs. Exmar NV | Unifiedpost Group vs. Ontex Group NV | Unifiedpost Group vs. X Fab Silicon | Unifiedpost Group vs. VGP NV |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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