Correlation Between X FAB and Murphy USA
Can any of the company-specific risk be diversified away by investing in both X FAB and Murphy USA 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 Murphy USA 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 Murphy USA, you can compare the effects of market volatilities on X FAB and Murphy USA 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 Murphy USA. Check out your portfolio center. Please also check ongoing floating volatility patterns of X FAB and Murphy USA.
Diversification Opportunities for X FAB and Murphy USA
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between XFABF and Murphy is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding X FAB Silicon Foundries and Murphy USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Murphy USA 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 Murphy USA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Murphy USA has no effect on the direction of X FAB i.e., X FAB and Murphy USA go up and down completely randomly.
Pair Corralation between X FAB and Murphy USA
Assuming the 90 days horizon X FAB Silicon Foundries is expected to under-perform the Murphy USA. In addition to that, X FAB is 1.96 times more volatile than Murphy USA. It trades about -0.05 of its total potential returns per unit of risk. Murphy USA is currently generating about 0.01 per unit of volatility. If you would invest 39,551 in Murphy USA on September 13, 2025 and sell it today you would earn a total of 55.00 from holding Murphy USA or generate 0.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
X FAB Silicon Foundries vs. Murphy USA
Performance |
| Timeline |
| X FAB Silicon |
| Murphy USA |
X FAB and Murphy USA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X FAB and Murphy USA
The main advantage of trading using opposite X FAB and Murphy USA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X FAB position performs unexpectedly, Murphy USA 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 Murphy USA will offset losses from the drop in Murphy USA's long position.| X FAB vs. Renesas Electronics | X FAB vs. Renesas Electronics Corp | X FAB vs. STMicroelectronics NV | X FAB vs. Lasertec |
| Murphy USA vs. Miniso Group Holding | Murphy USA vs. Mohawk Industries | Murphy USA vs. Vipshop Holdings Limited | Murphy USA vs. AutoNation |
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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