Correlation Between X FAB and SQUIRREL MEDIA
Can any of the company-specific risk be diversified away by investing in both X FAB and SQUIRREL MEDIA 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 SQUIRREL MEDIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between X FAB Silicon Foundries and SQUIRREL MEDIA SA, you can compare the effects of market volatilities on X FAB and SQUIRREL MEDIA 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 SQUIRREL MEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of X FAB and SQUIRREL MEDIA.
Diversification Opportunities for X FAB and SQUIRREL MEDIA
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between XFB and SQUIRREL is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding X FAB Silicon Foundries and SQUIRREL MEDIA SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SQUIRREL MEDIA SA 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 Foundries are associated (or correlated) with SQUIRREL MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SQUIRREL MEDIA SA has no effect on the direction of X FAB i.e., X FAB and SQUIRREL MEDIA go up and down completely randomly.
Pair Corralation between X FAB and SQUIRREL MEDIA
Assuming the 90 days trading horizon X FAB is expected to generate 6.78 times less return on investment than SQUIRREL MEDIA. In addition to that, X FAB is 1.03 times more volatile than SQUIRREL MEDIA SA. It trades about 0.03 of its total potential returns per unit of risk. SQUIRREL MEDIA SA is currently generating about 0.23 per unit of volatility. If you would invest 122.00 in SQUIRREL MEDIA SA on November 3, 2024 and sell it today you would earn a total of 17.00 from holding SQUIRREL MEDIA SA or generate 13.93% 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 Foundries vs. SQUIRREL MEDIA SA
Performance |
| Timeline |
| X FAB Silicon |
| SQUIRREL MEDIA SA |
X FAB and SQUIRREL MEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X FAB and SQUIRREL MEDIA
The main advantage of trading using opposite X FAB and SQUIRREL MEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X FAB position performs unexpectedly, SQUIRREL MEDIA 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 SQUIRREL MEDIA will offset losses from the drop in SQUIRREL MEDIA's long position.| X FAB vs. SIVERS SEMICONDUCTORS AB | X FAB vs. NorAm Drilling AS | X FAB vs. Volkswagen AG | X FAB vs. Darden Restaurants |
| SQUIRREL MEDIA vs. Global Ship Lease | SQUIRREL MEDIA vs. ALBIS LEASING AG | SQUIRREL MEDIA vs. WILLIS LEASE FIN | SQUIRREL MEDIA vs. Summit Materials |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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