Correlation Between Bell Food and Elmos Semiconductor
Can any of the company-specific risk be diversified away by investing in both Bell Food 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 Bell Food and Elmos Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bell Food Group and Elmos Semiconductor SE, you can compare the effects of market volatilities on Bell Food 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 Bell Food with a short position of Elmos Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bell Food and Elmos Semiconductor.
Diversification Opportunities for Bell Food and Elmos Semiconductor
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bell and Elmos is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Bell Food Group and Elmos Semiconductor SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elmos Semiconductor and Bell Food 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 Bell Food Group 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 Bell Food i.e., Bell Food and Elmos Semiconductor go up and down completely randomly.
Pair Corralation between Bell Food and Elmos Semiconductor
Assuming the 90 days trading horizon Bell Food is expected to generate 4.26 times less return on investment than Elmos Semiconductor. But when comparing it to its historical volatility, Bell Food Group is 2.85 times less risky than Elmos Semiconductor. It trades about 0.13 of its potential returns per unit of risk. Elmos Semiconductor SE is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 6,770 in Elmos Semiconductor SE on October 11, 2024 and sell it today you would earn a total of 765.00 from holding Elmos Semiconductor SE or generate 11.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bell Food Group vs. Elmos Semiconductor SE
Performance |
| Timeline |
| Bell Food Group |
| Elmos Semiconductor |
Bell Food and Elmos Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bell Food and Elmos Semiconductor
The main advantage of trading using opposite Bell Food and Elmos Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bell Food 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.| Bell Food vs. SMA Solar Technology | Bell Food vs. GoldMining | Bell Food vs. Allianz Technology Trust | Bell Food vs. Bisichi Mining PLC |
| Elmos Semiconductor vs. Electronic Arts | Elmos Semiconductor vs. Primorus Investments plc | Elmos Semiconductor vs. Monks Investment Trust | Elmos Semiconductor vs. Bell Food Group |
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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