Correlation Between X Fab and DICKER DATA
Can any of the company-specific risk be diversified away by investing in both X Fab and DICKER DATA 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 DICKER DATA 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 DICKER DATA LTD, you can compare the effects of market volatilities on X Fab and DICKER DATA 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 DICKER DATA. Check out your portfolio center. Please also check ongoing floating volatility patterns of X Fab and DICKER DATA.
Diversification Opportunities for X Fab and DICKER DATA
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between XFB and DICKER is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding X Fab Silicon and DICKER DATA LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DICKER DATA LTD 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 DICKER DATA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DICKER DATA LTD has no effect on the direction of X Fab i.e., X Fab and DICKER DATA go up and down completely randomly.
Pair Corralation between X Fab and DICKER DATA
Assuming the 90 days horizon X Fab Silicon is expected to under-perform the DICKER DATA. But the stock apears to be less risky and, when comparing its historical volatility, X Fab Silicon is 1.0 times less risky than DICKER DATA. The stock trades about -0.03 of its potential returns per unit of risk. The DICKER DATA LTD is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 566.00 in DICKER DATA LTD on September 3, 2024 and sell it today you would lose (56.00) from holding DICKER DATA LTD or give up 9.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
X Fab Silicon vs. DICKER DATA LTD
Performance |
| Timeline |
| X Fab Silicon |
| DICKER DATA LTD |
X Fab and DICKER DATA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X Fab and DICKER DATA
The main advantage of trading using opposite X Fab and DICKER DATA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X Fab position performs unexpectedly, DICKER DATA 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 DICKER DATA will offset losses from the drop in DICKER DATA's long position.| X Fab vs. Singapore Airlines Limited | X Fab vs. FANDIFI TECHNOLOGY P | X Fab vs. Microchip Technology Incorporated | X Fab vs. AECOM TECHNOLOGY |
| DICKER DATA vs. Arrow Electronics | DICKER DATA vs. KAGA EL LTD | DICKER DATA vs. Wayside Technology Group | DICKER DATA vs. INNELEC MULTIMMINHEO153 |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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