Correlation Between X-FAB Silicon and MAGNUM MINING
Can any of the company-specific risk be diversified away by investing in both X-FAB Silicon and MAGNUM MINING 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 MAGNUM MINING 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 MAGNUM MINING EXP, you can compare the effects of market volatilities on X-FAB Silicon and MAGNUM MINING 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 MAGNUM MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of X-FAB Silicon and MAGNUM MINING.
Diversification Opportunities for X-FAB Silicon and MAGNUM MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between X-FAB and MAGNUM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding X FAB Silicon Foundries and MAGNUM MINING EXP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAGNUM MINING EXP 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 MAGNUM MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAGNUM MINING EXP has no effect on the direction of X-FAB Silicon i.e., X-FAB Silicon and MAGNUM MINING go up and down completely randomly.
Pair Corralation between X-FAB Silicon and MAGNUM MINING
If you would invest 491.00 in X FAB Silicon Foundries on November 3, 2024 and sell it today you would earn a total of 5.00 from holding X FAB Silicon Foundries or generate 1.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
X FAB Silicon Foundries vs. MAGNUM MINING EXP
Performance |
| Timeline |
| X FAB Silicon |
| MAGNUM MINING EXP |
X-FAB Silicon and MAGNUM MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X-FAB Silicon and MAGNUM MINING
The main advantage of trading using opposite X-FAB Silicon and MAGNUM MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X-FAB Silicon position performs unexpectedly, MAGNUM MINING 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 MAGNUM MINING will offset losses from the drop in MAGNUM MINING's long position.| X-FAB Silicon vs. SIVERS SEMICONDUCTORS AB | X-FAB Silicon vs. NorAm Drilling AS | X-FAB Silicon vs. Volkswagen AG | X-FAB Silicon vs. Darden Restaurants |
| MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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