Correlation Between Elmos Semiconductor and Enbridge
Can any of the company-specific risk be diversified away by investing in both Elmos Semiconductor and Enbridge 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 Enbridge 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 Enbridge, you can compare the effects of market volatilities on Elmos Semiconductor and Enbridge 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 Enbridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elmos Semiconductor and Enbridge.
Diversification Opportunities for Elmos Semiconductor and Enbridge
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Elmos and Enbridge is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Elmos Semiconductor SE and Enbridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge 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 Enbridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enbridge has no effect on the direction of Elmos Semiconductor i.e., Elmos Semiconductor and Enbridge go up and down completely randomly.
Pair Corralation between Elmos Semiconductor and Enbridge
Assuming the 90 days trading horizon Elmos Semiconductor is expected to generate 2.28 times less return on investment than Enbridge. In addition to that, Elmos Semiconductor is 2.04 times more volatile than Enbridge. It trades about 0.02 of its total potential returns per unit of risk. Enbridge is currently generating about 0.08 per unit of volatility. If you would invest 4,671 in Enbridge on September 3, 2024 and sell it today you would earn a total of 1,329 from holding Enbridge or generate 28.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 54.42% |
| Values | Daily Returns |
Elmos Semiconductor SE vs. Enbridge
Performance |
| Timeline |
| Elmos Semiconductor |
| Enbridge |
Elmos Semiconductor and Enbridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elmos Semiconductor and Enbridge
The main advantage of trading using opposite Elmos Semiconductor and Enbridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elmos Semiconductor position performs unexpectedly, Enbridge 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 Enbridge will offset losses from the drop in Enbridge's long position.| Elmos Semiconductor vs. Concurrent Technologies Plc | Elmos Semiconductor vs. TechnipFMC PLC | Elmos Semiconductor vs. Celebrus Technologies plc | Elmos Semiconductor vs. Playtech Plc |
| Enbridge vs. Flow Traders NV | Enbridge vs. Grieg Seafood | Enbridge vs. Elmos Semiconductor SE | Enbridge vs. Ebro Foods |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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