Correlation Between X-FAB Silicon and Calibre Mining

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

Diversification Opportunities for X-FAB Silicon and Calibre Mining

-0.42

Correlation Coefficient

X-FAB Silicon  Calibre Mining

Very good diversification

The 3 months correlation between X-FAB and Calibre is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding X FAB Silicon Foundries and Calibre Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calibre Mining Corp 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 Calibre Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calibre Mining Corp has no effect on the direction of X-FAB Silicon i.e., X-FAB Silicon and Calibre Mining go up and down completely randomly.

Pair Corralation between X-FAB Silicon and Calibre Mining

Assuming the 90 days trading horizon X FAB Silicon Foundries is expected to under-perform the Calibre Mining. But the stock apears to be less risky and, when comparing its historical volatility, X FAB Silicon Foundries is 1.03 times less risky than Calibre Mining. The stock trades about -0.06 of its potential returns per unit of risk. The Calibre Mining Corp is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  144.00  in Calibre Mining Corp on December 23, 2024 and sell it today you would earn a total of  55.00  from holding Calibre Mining Corp or generate 38.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

X FAB Silicon Foundries  vs.  Calibre Mining Corp

X FAB Silicon

Risk-Adjusted Performance

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 latest fragile performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Calibre Mining Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Calibre Mining Corp are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Calibre Mining exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with X-FAB Silicon and Calibre Mining

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

The idea behind X FAB Silicon Foundries and Calibre Mining Corp 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.