Correlation Between Focus Home and ELMOS SEMICONDUCTOR
Can any of the company-specific risk be diversified away by investing in both Focus Home and ELMOS SEMICONDUCTOR 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 Focus Home and ELMOS SEMICONDUCTOR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Focus Home Interactive and ELMOS SEMICONDUCTOR, you can compare the effects of market volatilities on Focus Home and ELMOS SEMICONDUCTOR 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 Focus Home with a short position of ELMOS SEMICONDUCTOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Home and ELMOS SEMICONDUCTOR.
Diversification Opportunities for Focus Home and ELMOS SEMICONDUCTOR
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Focus and ELMOS is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Focus Home Interactive and ELMOS SEMICONDUCTOR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ELMOS SEMICONDUCTOR and Focus Home 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 Focus Home Interactive are associated (or correlated) with ELMOS SEMICONDUCTOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ELMOS SEMICONDUCTOR has no effect on the direction of Focus Home i.e., Focus Home and ELMOS SEMICONDUCTOR go up and down completely randomly.
Pair Corralation between Focus Home and ELMOS SEMICONDUCTOR
Assuming the 90 days horizon Focus Home is expected to generate 9.6 times less return on investment than ELMOS SEMICONDUCTOR. In addition to that, Focus Home is 1.16 times more volatile than ELMOS SEMICONDUCTOR. It trades about 0.02 of its total potential returns per unit of risk. ELMOS SEMICONDUCTOR is currently generating about 0.26 per unit of volatility. If you would invest 6,620 in ELMOS SEMICONDUCTOR on October 13, 2024 and sell it today you would earn a total of 1,220 from holding ELMOS SEMICONDUCTOR or generate 18.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Focus Home Interactive vs. ELMOS SEMICONDUCTOR
Performance |
| Timeline |
| Focus Home Interactive |
| ELMOS SEMICONDUCTOR |
Focus Home and ELMOS SEMICONDUCTOR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Focus Home and ELMOS SEMICONDUCTOR
The main advantage of trading using opposite Focus Home and ELMOS SEMICONDUCTOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Home position performs unexpectedly, ELMOS SEMICONDUCTOR 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 ELMOS SEMICONDUCTOR will offset losses from the drop in ELMOS SEMICONDUCTOR's long position.| Focus Home vs. TYSON FOODS A | Focus Home vs. MagnaChip Semiconductor Corp | Focus Home vs. BE Semiconductor Industries | Focus Home vs. Tyson Foods |
| ELMOS SEMICONDUCTOR vs. CARSALESCOM | ELMOS SEMICONDUCTOR vs. CarsalesCom | ELMOS SEMICONDUCTOR vs. TRADEGATE | ELMOS SEMICONDUCTOR vs. Focus Home Interactive |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |