Correlation Between Elmos Semiconductor and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Elmos Semiconductor and Dow Jones 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 Dow Jones 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 Dow Jones Industrial, you can compare the effects of market volatilities on Elmos Semiconductor and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elmos Semiconductor and Dow Jones.
Diversification Opportunities for Elmos Semiconductor and Dow Jones
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Elmos and Dow is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Elmos Semiconductor SE and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Elmos Semiconductor i.e., Elmos Semiconductor and Dow Jones go up and down completely randomly.
Pair Corralation between Elmos Semiconductor and Dow Jones
Assuming the 90 days trading horizon Elmos Semiconductor SE is expected to under-perform the Dow Jones. In addition to that, Elmos Semiconductor is 3.65 times more volatile than Dow Jones Industrial. It trades about -0.08 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.15 per unit of volatility. If you would invest 3,868,632 in Dow Jones Industrial on August 29, 2024 and sell it today you would earn a total of 603,574 from holding Dow Jones Industrial or generate 15.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Elmos Semiconductor SE vs. Dow Jones Industrial
Performance |
| Timeline |
Elmos Semiconductor and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Elmos Semiconductor SE
Pair trading matchups for Elmos Semiconductor
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Elmos Semiconductor and Dow Jones
The main advantage of trading using opposite Elmos Semiconductor and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elmos Semiconductor position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Elmos Semiconductor vs. Lendinvest PLC | Elmos Semiconductor vs. Neometals | Elmos Semiconductor vs. Coor Service Management | Elmos Semiconductor vs. Albion Technology General |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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