Correlation Between X Fab and KEBNI AB
Can any of the company-specific risk be diversified away by investing in both X Fab and KEBNI AB 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 KEBNI AB 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 KEBNI AB SERB, you can compare the effects of market volatilities on X Fab and KEBNI AB 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 KEBNI AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of X Fab and KEBNI AB.
Diversification Opportunities for X Fab and KEBNI AB
Very poor diversification
The 3 months correlation between XFB and KEBNI is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding X Fab Silicon and KEBNI AB SERB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KEBNI AB SERB 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 KEBNI AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KEBNI AB SERB has no effect on the direction of X Fab i.e., X Fab and KEBNI AB go up and down completely randomly.
Pair Corralation between X Fab and KEBNI AB
Assuming the 90 days horizon X Fab Silicon is expected to generate 0.87 times more return on investment than KEBNI AB. However, X Fab Silicon is 1.15 times less risky than KEBNI AB. It trades about -0.13 of its potential returns per unit of risk. KEBNI AB SERB is currently generating about -0.17 per unit of risk. If you would invest 538.00 in X Fab Silicon on September 2, 2024 and sell it today you would lose (118.00) from holding X Fab Silicon or give up 21.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
X Fab Silicon vs. KEBNI AB SERB
Performance |
| Timeline |
| X Fab Silicon |
| KEBNI AB SERB |
X Fab and KEBNI AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X Fab and KEBNI AB
The main advantage of trading using opposite X Fab and KEBNI AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X Fab position performs unexpectedly, KEBNI AB 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 KEBNI AB will offset losses from the drop in KEBNI AB's long position.| X Fab vs. Japan Medical Dynamic | X Fab vs. IMAGIN MEDICAL INC | X Fab vs. SAFETY MEDICAL PROD | X Fab vs. Soken Chemical Engineering |
| KEBNI AB vs. Virtus Investment Partners | KEBNI AB vs. SALESFORCE INC CDR | KEBNI AB vs. WisdomTree Investments | KEBNI AB vs. New Residential Investment |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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