Correlation Between X FAB and HEXINDO ADIPERKASA
Can any of the company-specific risk be diversified away by investing in both X FAB and HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA, you can compare the effects of market volatilities on X FAB and HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of X FAB and HEXINDO ADIPERKASA.
Diversification Opportunities for X FAB and HEXINDO ADIPERKASA
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between XFB and HEXINDO is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding X FAB Silicon Foundries and HEXINDO ADIPERKASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEXINDO ADIPERKASA has no effect on the direction of X FAB i.e., X FAB and HEXINDO ADIPERKASA go up and down completely randomly.
Pair Corralation between X FAB and HEXINDO ADIPERKASA
Assuming the 90 days trading horizon X FAB Silicon Foundries is expected to under-perform the HEXINDO ADIPERKASA. In addition to that, X FAB is 1.96 times more volatile than HEXINDO ADIPERKASA. It trades about -0.03 of its total potential returns per unit of risk. HEXINDO ADIPERKASA is currently generating about 0.13 per unit of volatility. If you would invest 26.00 in HEXINDO ADIPERKASA on November 1, 2024 and sell it today you would earn a total of 1.00 from holding HEXINDO ADIPERKASA or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
X FAB Silicon Foundries vs. HEXINDO ADIPERKASA
Performance |
| Timeline |
| X FAB Silicon |
| HEXINDO ADIPERKASA |
X FAB and HEXINDO ADIPERKASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X FAB and HEXINDO ADIPERKASA
The main advantage of trading using opposite X FAB and HEXINDO ADIPERKASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X FAB position performs unexpectedly, HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA will offset losses from the drop in HEXINDO ADIPERKASA's long position.| X FAB vs. Carsales | X FAB vs. The Hanover Insurance | X FAB vs. Safety Insurance Group | X FAB vs. PACIFIC ONLINE |
| HEXINDO ADIPERKASA vs. X FAB Silicon Foundries | HEXINDO ADIPERKASA vs. Chiba Bank | HEXINDO ADIPERKASA vs. Cognizant Technology Solutions | HEXINDO ADIPERKASA vs. Synchrony Financial |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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