Correlation Between Comerica and Elmos Semiconductor
Can any of the company-specific risk be diversified away by investing in both Comerica 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 Comerica and Elmos Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comerica and Elmos Semiconductor SE, you can compare the effects of market volatilities on Comerica 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 Comerica with a short position of Elmos Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comerica and Elmos Semiconductor.
Diversification Opportunities for Comerica and Elmos Semiconductor
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Comerica and Elmos is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Comerica and Elmos Semiconductor SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elmos Semiconductor and Comerica 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 Comerica 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 Comerica i.e., Comerica and Elmos Semiconductor go up and down completely randomly.
Pair Corralation between Comerica and Elmos Semiconductor
Assuming the 90 days trading horizon Comerica is expected to generate 0.64 times more return on investment than Elmos Semiconductor. However, Comerica is 1.56 times less risky than Elmos Semiconductor. It trades about 0.28 of its potential returns per unit of risk. Elmos Semiconductor SE is currently generating about 0.15 per unit of risk. If you would invest 6,290 in Comerica on September 2, 2024 and sell it today you would earn a total of 918.00 from holding Comerica or generate 14.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Comerica vs. Elmos Semiconductor SE
Performance |
| Timeline |
| Comerica |
| Elmos Semiconductor |
Comerica and Elmos Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comerica and Elmos Semiconductor
The main advantage of trading using opposite Comerica and Elmos Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comerica 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.| Comerica vs. Inspiration Healthcare Group | Comerica vs. Aeorema Communications Plc | Comerica vs. HCA Healthcare | Comerica vs. Spire Healthcare Group |
| Elmos Semiconductor vs. Coeur Mining | Elmos Semiconductor vs. InterContinental Hotels Group | Elmos Semiconductor vs. Park Hotels Resorts | Elmos Semiconductor vs. McEwen Mining |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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