Correlation Between X FAB 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 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 with a short position of Traton SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of X FAB and Traton SE.
Diversification Opportunities for X FAB and Traton SE
Significant diversification
The 3 months correlation between XFB and Traton is 0.06. 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 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 i.e., X FAB and Traton SE go up and down completely randomly.
Pair Corralation between X FAB and Traton SE
Assuming the 90 days trading horizon X FAB is expected to generate 3.45 times less return on investment than Traton SE. In addition to that, X FAB is 1.7 times more volatile than Traton SE. It trades about 0.01 of its total potential returns per unit of risk. Traton SE is currently generating about 0.09 per unit of volatility. If you would invest 2,760 in Traton SE on September 12, 2024 and sell it today you would earn a total of 295.00 from holding Traton SE or generate 10.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
X FAB Silicon Foundries vs. Traton SE
Performance |
| Timeline |
| X FAB Silicon |
| Traton SE |
X FAB and Traton SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X FAB and Traton SE
The main advantage of trading using opposite X FAB and Traton SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X FAB 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 vs. Highlight Communications AG | X FAB vs. Transportadora de Gas | X FAB vs. Global Ship Lease | X FAB vs. USWE SPORTS AB |
| Traton SE vs. CPU SOFTWAREHOUSE | Traton SE vs. CyberArk Software | Traton SE vs. WILLIS LEASE FIN | Traton SE vs. VITEC SOFTWARE GROUP |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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