Correlation Between Fabrinet and ScanTech
Can any of the company-specific risk be diversified away by investing in both Fabrinet and ScanTech 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 Fabrinet and ScanTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fabrinet and ScanTech AI Systems, you can compare the effects of market volatilities on Fabrinet and ScanTech 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 Fabrinet with a short position of ScanTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fabrinet and ScanTech.
Diversification Opportunities for Fabrinet and ScanTech
Pay attention - limited upside
The 3 months correlation between Fabrinet and ScanTech is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Fabrinet and ScanTech AI Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScanTech AI Systems and Fabrinet 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 Fabrinet are associated (or correlated) with ScanTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ScanTech AI Systems has no effect on the direction of Fabrinet i.e., Fabrinet and ScanTech go up and down completely randomly.
Pair Corralation between Fabrinet and ScanTech
Allowing for the 90-day total investment horizon Fabrinet is expected to generate 0.45 times more return on investment than ScanTech. However, Fabrinet is 2.23 times less risky than ScanTech. It trades about 0.4 of its potential returns per unit of risk. ScanTech AI Systems is currently generating about -0.03 per unit of risk. If you would invest 25,843 in Fabrinet on April 15, 2025 and sell it today you would earn a total of 3,852 from holding Fabrinet or generate 14.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fabrinet vs. ScanTech AI Systems
Performance |
| Timeline |
| Fabrinet |
| ScanTech AI Systems |
Fabrinet and ScanTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fabrinet and ScanTech
The main advantage of trading using opposite Fabrinet and ScanTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fabrinet position performs unexpectedly, ScanTech 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 ScanTech will offset losses from the drop in ScanTech's long position.The idea behind Fabrinet and ScanTech AI Systems 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.| ScanTech vs. Valneva SE ADR | ScanTech vs. MYR Group | ScanTech vs. Alto Neuroscience, | ScanTech vs. Regeneron Pharmaceuticals |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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