Correlation Between INTEGR SILICON and X FAB

Can any of the company-specific risk be diversified away by investing in both INTEGR SILICON and X FAB 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 INTEGR SILICON and X FAB into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between INTEGR SILICON SOL and X FAB Silicon Foundries, you can compare the effects of market volatilities on INTEGR SILICON and X FAB 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 INTEGR SILICON with a short position of X FAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTEGR SILICON and X FAB.

Diversification Opportunities for INTEGR SILICON and X FAB

0.0

Correlation Coefficient

INTEGR SILICON  X FAB

Pay attention - limited upside

The 3 months correlation between INTEGR and XFB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding INTEGR SILICON SOL and X FAB Silicon Foundries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X FAB Silicon and INTEGR 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 INTEGR SILICON SOL are associated (or correlated) with X FAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X FAB Silicon has no effect on the direction of INTEGR SILICON i.e., INTEGR SILICON and X FAB go up and down completely randomly.

Pair Corralation between INTEGR SILICON and X FAB

If you would invest (100.00) in INTEGR SILICON SOL on September 4, 2024 and sell it today you would earn a total of  100.00  from holding INTEGR SILICON SOL or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

INTEGR SILICON SOL  vs.  X FAB Silicon Foundries

INTEGR SILICON SOL

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INTEGR SILICON SOL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, INTEGR SILICON is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

X FAB Silicon

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days X FAB Silicon Foundries has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's fundamental drivers remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with INTEGR SILICON and X FAB

The main advantage of trading using opposite INTEGR SILICON and X FAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTEGR SILICON position performs unexpectedly, X FAB 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 X FAB will offset losses from the drop in X FAB's long position.

The idea behind INTEGR SILICON SOL and X FAB Silicon Foundries pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.