Correlation Between X FAB and Revelyst,

Can any of the company-specific risk be diversified away by investing in both X FAB and Revelyst, 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 and Revelyst, 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 Revelyst,, you can compare the effects of market volatilities on X FAB and Revelyst, 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 with a short position of Revelyst,. Check out your portfolio center. Please also check ongoing floating volatility patterns of X FAB and Revelyst,.

Diversification Opportunities for X FAB and Revelyst,

-0.23

Correlation Coefficient

X FAB  Revelyst,

Very good diversification

The 3 months correlation between XFABF and Revelyst, is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding X FAB Silicon Foundries and Revelyst, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Revelyst, and X FAB 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 Revelyst,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Revelyst, has no effect on the direction of X FAB i.e., X FAB and Revelyst, go up and down completely randomly.

Pair Corralation between X FAB and Revelyst,

Assuming the 90 days horizon X FAB is expected to generate 3.6 times less return on investment than Revelyst,. In addition to that, X FAB is 2.21 times more volatile than Revelyst,. It trades about 0.05 of its total potential returns per unit of risk. Revelyst, is currently generating about 0.38 per unit of volatility. If you would invest  1,904  in Revelyst, on October 21, 2024 and sell it today you would earn a total of  104.00  from holding Revelyst, or generate 5.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	52.63%
Values	Daily Returns

X FAB Silicon Foundries  vs.  Revelyst,

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. Despite nearly stable fundamental drivers, X FAB is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Revelyst,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Revelyst, has generated negative risk-adjusted returns adding no value to investors with long positions. Even with abnormal performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with X FAB and Revelyst,

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

The idea behind X FAB Silicon Foundries and Revelyst, 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.

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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.