Correlation Between X-FAB Silicon and IDEXX Laboratories
Can any of the company-specific risk be diversified away by investing in both X-FAB Silicon and IDEXX Laboratories 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 IDEXX Laboratories 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 IDEXX Laboratories, you can compare the effects of market volatilities on X-FAB Silicon and IDEXX Laboratories 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 IDEXX Laboratories. Check out your portfolio center. Please also check ongoing floating volatility patterns of X-FAB Silicon and IDEXX Laboratories.
Diversification Opportunities for X-FAB Silicon and IDEXX Laboratories
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between X-FAB and IDEXX is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding X FAB Silicon Foundries and IDEXX Laboratories in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IDEXX Laboratories 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 IDEXX Laboratories. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IDEXX Laboratories has no effect on the direction of X-FAB Silicon i.e., X-FAB Silicon and IDEXX Laboratories go up and down completely randomly.
Pair Corralation between X-FAB Silicon and IDEXX Laboratories
Assuming the 90 days horizon X FAB Silicon Foundries is expected to under-perform the IDEXX Laboratories. In addition to that, X-FAB Silicon is 1.44 times more volatile than IDEXX Laboratories. It trades about -0.15 of its total potential returns per unit of risk. IDEXX Laboratories is currently generating about 0.1 per unit of volatility. If you would invest 63,395 in IDEXX Laboratories on September 3, 2025 and sell it today you would earn a total of 9,502 from holding IDEXX Laboratories or generate 14.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
X FAB Silicon Foundries vs. IDEXX Laboratories
Performance |
| Timeline |
| X FAB Silicon |
| IDEXX Laboratories |
X-FAB Silicon and IDEXX Laboratories Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X-FAB Silicon and IDEXX Laboratories
The main advantage of trading using opposite X-FAB Silicon and IDEXX Laboratories positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X-FAB Silicon position performs unexpectedly, IDEXX Laboratories 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 IDEXX Laboratories will offset losses from the drop in IDEXX Laboratories' long position.| X-FAB Silicon vs. My Screen Mobile | X-FAB Silicon vs. Active Health Foods | X-FAB Silicon vs. NH Foods Ltd | X-FAB Silicon vs. T Mobile US, 5500 |
| IDEXX Laboratories vs. B Communications | IDEXX Laboratories vs. Franklin Wireless Corp | IDEXX Laboratories vs. DATA Communications Management | IDEXX Laboratories vs. Net Lease Office |
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.
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