Correlation Between Xenia Hotels and ELMOS SEMICONDUCTOR
Can any of the company-specific risk be diversified away by investing in both Xenia Hotels 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 Xenia Hotels and ELMOS SEMICONDUCTOR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xenia Hotels Resorts and ELMOS SEMICONDUCTOR, you can compare the effects of market volatilities on Xenia Hotels 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 Xenia Hotels with a short position of ELMOS SEMICONDUCTOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xenia Hotels and ELMOS SEMICONDUCTOR.
Diversification Opportunities for Xenia Hotels and ELMOS SEMICONDUCTOR
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xenia and ELMOS is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Xenia Hotels Resorts and ELMOS SEMICONDUCTOR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ELMOS SEMICONDUCTOR and Xenia Hotels 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 Xenia Hotels Resorts 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 Xenia Hotels i.e., Xenia Hotels and ELMOS SEMICONDUCTOR go up and down completely randomly.
Pair Corralation between Xenia Hotels and ELMOS SEMICONDUCTOR
Assuming the 90 days trading horizon Xenia Hotels is expected to generate 1.2 times less return on investment than ELMOS SEMICONDUCTOR. But when comparing it to its historical volatility, Xenia Hotels Resorts is 1.52 times less risky than ELMOS SEMICONDUCTOR. It trades about 0.02 of its potential returns per unit of risk. ELMOS SEMICONDUCTOR is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 6,142 in ELMOS SEMICONDUCTOR on August 26, 2024 and sell it today you would earn a total of 38.00 from holding ELMOS SEMICONDUCTOR or generate 0.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xenia Hotels Resorts vs. ELMOS SEMICONDUCTOR
Performance |
| Timeline |
| Xenia Hotels Resorts |
| ELMOS SEMICONDUCTOR |
Xenia Hotels and ELMOS SEMICONDUCTOR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xenia Hotels and ELMOS SEMICONDUCTOR
The main advantage of trading using opposite Xenia Hotels and ELMOS SEMICONDUCTOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xenia Hotels 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.| Xenia Hotels vs. Host Hotels Resorts | Xenia Hotels vs. Sunstone Hotel Investors | Xenia Hotels vs. ASHFORD HOSPITTRUST |
| ELMOS SEMICONDUCTOR vs. NH HOTEL GROUP | ELMOS SEMICONDUCTOR vs. InterContinental Hotels Group | ELMOS SEMICONDUCTOR vs. Xenia Hotels Resorts | ELMOS SEMICONDUCTOR vs. Hyatt Hotels |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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