Correlation Between X-FAB Silicon and Traton SE
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By analyzing existing cross correlation between X FAB Silicon Foundries and Traton SE, you can compare the effects of market volatilities on X-FAB Silicon and Traton SE 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 Silicon with a short position of Traton SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of X-FAB Silicon and Traton SE.
Diversification Opportunities for X-FAB Silicon and Traton SE
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between X-FAB and Traton is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding X FAB Silicon Foundries and Traton SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Traton SE and X-FAB Silicon 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 Traton SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Traton SE has no effect on the direction of X-FAB Silicon i.e., X-FAB Silicon and Traton SE go up and down completely randomly.
Pair Corralation between X-FAB Silicon and Traton SE
Assuming the 90 days trading horizon X FAB Silicon Foundries is expected to under-perform the Traton SE. In addition to that, X-FAB Silicon is 1.3 times more volatile than Traton SE. It trades about -0.11 of its total potential returns per unit of risk. Traton SE is currently generating about 0.08 per unit of volatility. If you would invest 1,983 in Traton SE on September 4, 2024 and sell it today you would earn a total of 887.00 from holding Traton SE or generate 44.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
X FAB Silicon Foundries vs. Traton SE
Performance |
| Timeline |
| X FAB Silicon |
| Traton SE |
X-FAB Silicon and Traton SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X-FAB Silicon and Traton SE
The main advantage of trading using opposite X-FAB Silicon and Traton SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X-FAB Silicon position performs unexpectedly, Traton SE 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 Traton SE will offset losses from the drop in Traton SE's long position.| X-FAB Silicon vs. Suntory Beverage Food | X-FAB Silicon vs. SMA Solar Technology | X-FAB Silicon vs. Microchip Technology Incorporated | X-FAB Silicon vs. Micron Technology |
| Traton SE vs. SLR Investment Corp | Traton SE vs. DAIRY FARM INTL | Traton SE vs. MGIC INVESTMENT | Traton SE vs. Dairy Farm International |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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