Correlation Between X FAB and INTEGR SILICON

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

Diversification Opportunities for X FAB and INTEGR SILICON

0.0

Correlation Coefficient

X FAB  INTEGR SILICON

Pay attention - limited upside

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

Pair Corralation between X FAB and INTEGR SILICON

If you would invest (100.00) in INTEGR SILICON SOL on December 2, 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

X FAB Silicon Foundries  vs.  INTEGR SILICON SOL

X FAB Silicon

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in X FAB Silicon Foundries are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental drivers, X FAB is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

INTEGR SILICON SOL

Risk-Adjusted Performance

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.

Pair Trading with X FAB and INTEGR SILICON

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

The idea behind X FAB Silicon Foundries and INTEGR SILICON SOL 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.