Correlation Between X-FAB Silicon and TGS ESPORTS

Can any of the company-specific risk be diversified away by investing in both X-FAB Silicon and TGS ESPORTS 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 TGS ESPORTS 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 TGS ESPORTS INC, you can compare the effects of market volatilities on X-FAB Silicon and TGS ESPORTS 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 TGS ESPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of X-FAB Silicon and TGS ESPORTS.

Diversification Opportunities for X-FAB Silicon and TGS ESPORTS

0.0

Correlation Coefficient

X-FAB Silicon  TGS ESPORTS

Pay attention - limited upside

The 3 months correlation between X-FAB and TGS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding X FAB Silicon Foundries and TGS ESPORTS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TGS ESPORTS INC 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 TGS ESPORTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TGS ESPORTS INC has no effect on the direction of X-FAB Silicon i.e., X-FAB Silicon and TGS ESPORTS go up and down completely randomly.

Pair Corralation between X-FAB Silicon and TGS ESPORTS

If you would invest  3.40  in TGS ESPORTS INC on January 26, 2024 and sell it today you would earn a total of  0.00  from holding TGS ESPORTS INC or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.6%
Values	Daily Returns

X FAB Silicon Foundries  vs.  TGS ESPORTS INC

X FAB Silicon

Risk-Adjusted Performance

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Very Weak

Over the last 90 days X FAB Silicon Foundries has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in May 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

TGS ESPORTS INC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TGS ESPORTS INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, TGS ESPORTS is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with X-FAB Silicon and TGS ESPORTS

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

The idea behind X FAB Silicon Foundries and TGS ESPORTS INC 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.