Correlation Between ATRESMEDIA and X FAB

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

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

Diversification Opportunities for ATRESMEDIA and X FAB

0.79

Correlation Coefficient

ATRESMEDIA  X FAB

Poor diversification

The 3 months correlation between ATRESMEDIA and XFB is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding ATRESMEDIA and X FAB Silicon Foundries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X FAB Silicon and ATRESMEDIA 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 ATRESMEDIA 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 ATRESMEDIA i.e., ATRESMEDIA and X FAB go up and down completely randomly.

Pair Corralation between ATRESMEDIA and X FAB

Assuming the 90 days trading horizon ATRESMEDIA is expected to under-perform the X FAB. But the stock apears to be less risky and, when comparing its historical volatility, ATRESMEDIA is 1.53 times less risky than X FAB. The stock trades about -0.32 of its potential returns per unit of risk. The X FAB Silicon Foundries is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest  518.00  in X FAB Silicon Foundries on March 27, 2025 and sell it today you would earn a total of  105.00  from holding X FAB Silicon Foundries or generate 20.27% return on investment over 90 days.

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

ATRESMEDIA  vs.  X FAB Silicon Foundries

ATRESMEDIA

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ATRESMEDIA are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, ATRESMEDIA may actually be approaching a critical reversion point that can send shares even higher in July 2025.

X FAB Silicon

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in X FAB Silicon Foundries are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental drivers, X FAB exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ATRESMEDIA and X FAB

The main advantage of trading using opposite ATRESMEDIA and X FAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRESMEDIA 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 ATRESMEDIA and X FAB Silicon Foundries 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.