Correlation Between X-FAB Silicon and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both X-FAB Silicon and MCEWEN 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 MCEWEN 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 MCEWEN MINING INC, you can compare the effects of market volatilities on X-FAB Silicon and MCEWEN 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 MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of X-FAB Silicon and MCEWEN MINING.
Diversification Opportunities for X-FAB Silicon and MCEWEN MINING
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between X-FAB and MCEWEN is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding X FAB Silicon Foundries and MCEWEN MINING INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCEWEN MINING 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 MCEWEN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCEWEN MINING INC has no effect on the direction of X-FAB Silicon i.e., X-FAB Silicon and MCEWEN MINING go up and down completely randomly.
Pair Corralation between X-FAB Silicon and MCEWEN MINING
Assuming the 90 days trading horizon X FAB Silicon Foundries is expected to generate 0.73 times more return on investment than MCEWEN MINING. However, X FAB Silicon Foundries is 1.37 times less risky than MCEWEN MINING. It trades about -0.08 of its potential returns per unit of risk. MCEWEN MINING INC is currently generating about -0.17 per unit of risk. If you would invest 456.00 in X FAB Silicon Foundries on August 28, 2024 and sell it today you would lose (26.00) from holding X FAB Silicon Foundries or give up 5.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
X FAB Silicon Foundries vs. MCEWEN MINING INC
Performance |
| Timeline |
| X FAB Silicon |
| MCEWEN MINING INC |
X-FAB Silicon and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X-FAB Silicon and MCEWEN MINING
The main advantage of trading using opposite X-FAB Silicon and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X-FAB Silicon position performs unexpectedly, MCEWEN 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 MCEWEN MINING will offset losses from the drop in MCEWEN MINING'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 |
| MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. NMI Holdings | MCEWEN MINING vs. Origin Agritech | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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