Correlation Between X-FAB Silicon and Integral
Can any of the company-specific risk be diversified away by investing in both X-FAB Silicon and Integral 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 Integral 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 Integral Ad Science, you can compare the effects of market volatilities on X-FAB Silicon and Integral 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 Integral. Check out your portfolio center. Please also check ongoing floating volatility patterns of X-FAB Silicon and Integral.
Diversification Opportunities for X-FAB Silicon and Integral
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between X-FAB and Integral is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding X FAB Silicon Foundries and Integral Ad Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integral Ad Science 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 Integral. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integral Ad Science has no effect on the direction of X-FAB Silicon i.e., X-FAB Silicon and Integral go up and down completely randomly.
Pair Corralation between X-FAB Silicon and Integral
Assuming the 90 days horizon X FAB Silicon Foundries is expected to generate 1.24 times more return on investment than Integral. However, X-FAB Silicon is 1.24 times more volatile than Integral Ad Science. It trades about 0.05 of its potential returns per unit of risk. Integral Ad Science is currently generating about -0.02 per unit of risk. If you would invest 600.00 in X FAB Silicon Foundries on May 31, 2025 and sell it today you would earn a total of 220.00 from holding X FAB Silicon Foundries or generate 36.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
X FAB Silicon Foundries vs. Integral Ad Science
Performance |
| Timeline |
| X FAB Silicon |
| Integral Ad Science |
X-FAB Silicon and Integral Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X-FAB Silicon and Integral
The main advantage of trading using opposite X-FAB Silicon and Integral positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X-FAB Silicon position performs unexpectedly, Integral 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 Integral will offset losses from the drop in Integral's long position.| X-FAB Silicon vs. NVIDIA | X-FAB Silicon vs. Intel | X-FAB Silicon vs. Taiwan Semiconductor Manufacturing | X-FAB Silicon vs. Marvell Technology Group |
| Integral vs. Interpublic Group of | Integral vs. Cimpress NV | Integral vs. Stagwell | Integral vs. Criteo Sa |
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 Stocks Directory module to find actively traded stocks across global markets.
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