Correlation Between X-FAB Silicon and IMAGIN MEDICAL
Can any of the company-specific risk be diversified away by investing in both X-FAB Silicon and IMAGIN MEDICAL 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 Silicon and IMAGIN MEDICAL 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 IMAGIN MEDICAL INC, you can compare the effects of market volatilities on X-FAB Silicon and IMAGIN MEDICAL 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 IMAGIN MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of X-FAB Silicon and IMAGIN MEDICAL.
Diversification Opportunities for X-FAB Silicon and IMAGIN MEDICAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between X-FAB and IMAGIN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding X FAB Silicon Foundries and IMAGIN MEDICAL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMAGIN MEDICAL INC 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 IMAGIN MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IMAGIN MEDICAL INC has no effect on the direction of X-FAB Silicon i.e., X-FAB Silicon and IMAGIN MEDICAL go up and down completely randomly.
Pair Corralation between X-FAB Silicon and IMAGIN MEDICAL
Assuming the 90 days trading horizon X FAB Silicon Foundries is expected to under-perform the IMAGIN MEDICAL. But the stock apears to be less risky and, when comparing its historical volatility, X FAB Silicon Foundries is 48.71 times less risky than IMAGIN MEDICAL. The stock trades about -0.02 of its potential returns per unit of risk. The IMAGIN MEDICAL INC is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 9.04 in IMAGIN MEDICAL INC on October 13, 2024 and sell it today you would lose (8.99) from holding IMAGIN MEDICAL INC or give up 99.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
X FAB Silicon Foundries vs. IMAGIN MEDICAL INC
Performance |
| Timeline |
| X FAB Silicon |
| IMAGIN MEDICAL INC |
X-FAB Silicon and IMAGIN MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X-FAB Silicon and IMAGIN MEDICAL
The main advantage of trading using opposite X-FAB Silicon and IMAGIN MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X-FAB Silicon position performs unexpectedly, IMAGIN MEDICAL 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 IMAGIN MEDICAL will offset losses from the drop in IMAGIN MEDICAL's long position.| X-FAB Silicon vs. Apple Inc | X-FAB Silicon vs. Apple Inc | X-FAB Silicon vs. Apple Inc | X-FAB Silicon vs. Apple Inc |
| IMAGIN MEDICAL vs. X FAB Silicon Foundries | IMAGIN MEDICAL vs. CHEMICAL INDUSTRIES | IMAGIN MEDICAL vs. X FAB Silicon Foundries | IMAGIN MEDICAL vs. TIANDE CHEMICAL |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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