Correlation Between Sun Art and X Fab

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

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

Diversification Opportunities for Sun Art and X Fab

0.56

Correlation Coefficient

Sun Art  X Fab

Very weak diversification

The 3 months correlation between Sun and XFB is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Sun Art Retail 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 Sun Art 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 Sun Art Retail 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 Sun Art i.e., Sun Art and X Fab go up and down completely randomly.

Pair Corralation between Sun Art and X Fab

Assuming the 90 days trading horizon Sun Art is expected to generate 2.44 times less return on investment than X Fab. In addition to that, Sun Art is 1.17 times more volatile than X Fab Silicon. It trades about 0.1 of its total potential returns per unit of risk. X Fab Silicon is currently generating about 0.28 per unit of volatility. If you would invest  398.00  in X Fab Silicon on April 22, 2025 and sell it today you would earn a total of  268.00  from holding X Fab Silicon or generate 67.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Sun Art Retail  vs.  X Fab Silicon

Sun Art Retail

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sun Art Retail are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Sun Art unveiled solid returns over the last few months and may actually be approaching a breakup point.

X Fab Silicon

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in X Fab Silicon are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, X Fab reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sun Art and X Fab

The main advantage of trading using opposite Sun Art and X Fab positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Art 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 Sun Art Retail 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.

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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.