Correlation Between Elmos Semiconductor and Pfeiffer Vacuum
Can any of the company-specific risk be diversified away by investing in both Elmos Semiconductor and Pfeiffer Vacuum 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 Elmos Semiconductor and Pfeiffer Vacuum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elmos Semiconductor SE and Pfeiffer Vacuum Technology, you can compare the effects of market volatilities on Elmos Semiconductor and Pfeiffer Vacuum 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 Elmos Semiconductor with a short position of Pfeiffer Vacuum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elmos Semiconductor and Pfeiffer Vacuum.
Diversification Opportunities for Elmos Semiconductor and Pfeiffer Vacuum
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Elmos and Pfeiffer is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Elmos Semiconductor SE and Pfeiffer Vacuum Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pfeiffer Vacuum Tech and Elmos Semiconductor 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 Elmos Semiconductor SE are associated (or correlated) with Pfeiffer Vacuum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pfeiffer Vacuum Tech has no effect on the direction of Elmos Semiconductor i.e., Elmos Semiconductor and Pfeiffer Vacuum go up and down completely randomly.
Pair Corralation between Elmos Semiconductor and Pfeiffer Vacuum
Assuming the 90 days trading horizon Elmos Semiconductor SE is expected to generate 8.37 times more return on investment than Pfeiffer Vacuum. However, Elmos Semiconductor is 8.37 times more volatile than Pfeiffer Vacuum Technology. It trades about 0.04 of its potential returns per unit of risk. Pfeiffer Vacuum Technology is currently generating about 0.01 per unit of risk. If you would invest 6,098 in Elmos Semiconductor SE on August 28, 2024 and sell it today you would earn a total of 107.00 from holding Elmos Semiconductor SE or generate 1.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elmos Semiconductor SE vs. Pfeiffer Vacuum Technology
Performance |
| Timeline |
| Elmos Semiconductor |
| Pfeiffer Vacuum Tech |
Elmos Semiconductor and Pfeiffer Vacuum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elmos Semiconductor and Pfeiffer Vacuum
The main advantage of trading using opposite Elmos Semiconductor and Pfeiffer Vacuum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elmos Semiconductor position performs unexpectedly, Pfeiffer Vacuum 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 Pfeiffer Vacuum will offset losses from the drop in Pfeiffer Vacuum's long position.| Elmos Semiconductor vs. Samsung Electronics Co | Elmos Semiconductor vs. Samsung Electronics Co | Elmos Semiconductor vs. Hyundai Motor | Elmos Semiconductor vs. Toyota Motor Corp |
| Pfeiffer Vacuum vs. Samsung Electronics Co | Pfeiffer Vacuum vs. Samsung Electronics Co | Pfeiffer Vacuum vs. Hyundai Motor | Pfeiffer Vacuum vs. Toyota Motor Corp |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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