Correlation Between Elmos Semiconductor and Sunny Optical
Can any of the company-specific risk be diversified away by investing in both Elmos Semiconductor and Sunny Optical 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 Sunny Optical 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 Sunny Optical Technology, you can compare the effects of market volatilities on Elmos Semiconductor and Sunny Optical 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 Sunny Optical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elmos Semiconductor and Sunny Optical.
Diversification Opportunities for Elmos Semiconductor and Sunny Optical
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Elmos and Sunny is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Elmos Semiconductor SE and Sunny Optical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunny Optical Technology 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 Sunny Optical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunny Optical Technology has no effect on the direction of Elmos Semiconductor i.e., Elmos Semiconductor and Sunny Optical go up and down completely randomly.
Pair Corralation between Elmos Semiconductor and Sunny Optical
Assuming the 90 days trading horizon Elmos Semiconductor is expected to generate 2.71 times less return on investment than Sunny Optical. In addition to that, Elmos Semiconductor is 1.01 times more volatile than Sunny Optical Technology. It trades about 0.08 of its total potential returns per unit of risk. Sunny Optical Technology is currently generating about 0.21 per unit of volatility. If you would invest 5,075 in Sunny Optical Technology on August 30, 2024 and sell it today you would earn a total of 965.00 from holding Sunny Optical Technology or generate 19.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elmos Semiconductor SE vs. Sunny Optical Technology
Performance |
| Timeline |
| Elmos Semiconductor |
| Sunny Optical Technology |
Elmos Semiconductor and Sunny Optical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elmos Semiconductor and Sunny Optical
The main advantage of trading using opposite Elmos Semiconductor and Sunny Optical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elmos Semiconductor position performs unexpectedly, Sunny Optical 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 Sunny Optical will offset losses from the drop in Sunny Optical's long position.| Elmos Semiconductor vs. Lendinvest PLC | Elmos Semiconductor vs. Neometals | Elmos Semiconductor vs. Albion Technology General | Elmos Semiconductor vs. Jupiter Fund Management |
| Sunny Optical vs. Lendinvest PLC | Sunny Optical vs. Neometals | Sunny Optical vs. Albion Technology General | Sunny Optical vs. Jupiter Fund Management |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |