Correlation Between Ehouse Global and X-FAB Silicon

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

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

Diversification Opportunities for Ehouse Global and X-FAB Silicon

0.0

Correlation Coefficient

Ehouse Global  X-FAB Silicon

Pay attention - limited upside

The 3 months correlation between Ehouse and X-FAB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ehouse Global 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 Ehouse Global 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 Ehouse Global are associated (or correlated) with X-FAB Silicon. 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 Ehouse Global i.e., Ehouse Global and X-FAB Silicon go up and down completely randomly.

Pair Corralation between Ehouse Global and X-FAB Silicon

If you would invest  550.00  in X FAB Silicon Foundries on May 5, 2025 and sell it today you would earn a total of  200.00  from holding X FAB Silicon Foundries or generate 36.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Ehouse Global  vs.  X FAB Silicon Foundries

Ehouse Global

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ehouse Global has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Ehouse Global is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

X FAB Silicon

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in X FAB Silicon Foundries are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak fundamental drivers, X-FAB Silicon reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ehouse Global and X-FAB Silicon

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

The idea behind Ehouse Global 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.