Correlation Between Ageas SANV and X Fab

Can any of the company-specific risk be diversified away by investing in both Ageas SANV and X Fab 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 Ageas SANV and X Fab into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ageas SANV and X Fab Silicon, you can compare the effects of market volatilities on Ageas SANV and X Fab 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 Ageas SANV with a short position of X Fab. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ageas SANV and X Fab.

Diversification Opportunities for Ageas SANV and X Fab

-0.19

Correlation Coefficient

Ageas SANV  X Fab

Good diversification

The 3 months correlation between Ageas and XFAB is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding ageas SANV and X Fab Silicon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X Fab Silicon and Ageas SANV 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 ageas SANV are associated (or correlated) with X Fab. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X Fab Silicon has no effect on the direction of Ageas SANV i.e., Ageas SANV and X Fab go up and down completely randomly.

Pair Corralation between Ageas SANV and X Fab

Assuming the 90 days trading horizon ageas SANV is expected to generate 0.25 times more return on investment than X Fab. However, ageas SANV is 4.05 times less risky than X Fab. It trades about 0.07 of its potential returns per unit of risk. X Fab Silicon is currently generating about -0.11 per unit of risk. If you would invest  4,652  in ageas SANV on August 30, 2024 and sell it today you would earn a total of  152.00  from holding ageas SANV or generate 3.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

ageas SANV  vs.  X Fab Silicon

ageas SANV

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ageas SANV are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Ageas SANV is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

X Fab Silicon

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days X Fab Silicon has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in December 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Ageas SANV and X Fab

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

The idea behind ageas SANV and X Fab Silicon 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.