Correlation Between X FAB and Hapag-Lloyd
Can any of the company-specific risk be diversified away by investing in both X FAB and Hapag-Lloyd 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 Hapag-Lloyd 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 Hapag Lloyd AG, you can compare the effects of market volatilities on X FAB and Hapag-Lloyd 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 Hapag-Lloyd. Check out your portfolio center. Please also check ongoing floating volatility patterns of X FAB and Hapag-Lloyd.
Diversification Opportunities for X FAB and Hapag-Lloyd
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between XFB and Hapag-Lloyd is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding X FAB Silicon Foundries and Hapag Lloyd AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hapag Lloyd AG 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 Hapag-Lloyd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hapag Lloyd AG has no effect on the direction of X FAB i.e., X FAB and Hapag-Lloyd go up and down completely randomly.
Pair Corralation between X FAB and Hapag-Lloyd
Assuming the 90 days trading horizon X FAB Silicon Foundries is expected to generate 1.1 times more return on investment than Hapag-Lloyd. However, X FAB is 1.1 times more volatile than Hapag Lloyd AG. It trades about 0.22 of its potential returns per unit of risk. Hapag Lloyd AG is currently generating about 0.05 per unit of risk. If you would invest 440.00 in X FAB Silicon Foundries on September 13, 2024 and sell it today you would earn a total of 61.00 from holding X FAB Silicon Foundries or generate 13.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
X FAB Silicon Foundries vs. Hapag Lloyd AG
Performance |
| Timeline |
| X FAB Silicon |
| Hapag Lloyd AG |
X FAB and Hapag-Lloyd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X FAB and Hapag-Lloyd
The main advantage of trading using opposite X FAB and Hapag-Lloyd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X FAB position performs unexpectedly, Hapag-Lloyd 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 Hapag-Lloyd will offset losses from the drop in Hapag-Lloyd's long position.The idea behind X FAB Silicon Foundries and Hapag Lloyd AG 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.| Hapag-Lloyd vs. Superior Plus Corp | Hapag-Lloyd vs. SIVERS SEMICONDUCTORS AB | Hapag-Lloyd vs. Norsk Hydro ASA | Hapag-Lloyd vs. Reliance Steel Aluminum |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |