Correlation Between X-FAB Silicon and FANDIFI TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both X-FAB Silicon and FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY P, you can compare the effects of market volatilities on X-FAB Silicon and FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of X-FAB Silicon and FANDIFI TECHNOLOGY.
Diversification Opportunities for X-FAB Silicon and FANDIFI TECHNOLOGY
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between X-FAB and FANDIFI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding X FAB Silicon Foundries and FANDIFI TECHNOLOGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FANDIFI TECHNOLOGY has no effect on the direction of X-FAB Silicon i.e., X-FAB Silicon and FANDIFI TECHNOLOGY go up and down completely randomly.
Pair Corralation between X-FAB Silicon and FANDIFI TECHNOLOGY
If you would invest 0.05 in FANDIFI TECHNOLOGY P on August 28, 2024 and sell it today you would earn a total of 0.00 from holding FANDIFI TECHNOLOGY P or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
X FAB Silicon Foundries vs. FANDIFI TECHNOLOGY P
Performance |
| Timeline |
| X FAB Silicon |
| FANDIFI TECHNOLOGY |
X-FAB Silicon and FANDIFI TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X-FAB Silicon and FANDIFI TECHNOLOGY
The main advantage of trading using opposite X-FAB Silicon and FANDIFI TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X-FAB Silicon position performs unexpectedly, FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY will offset losses from the drop in FANDIFI TECHNOLOGY'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 |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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