Correlation Between AGRICUL BK and ELMOS SEMICONDUCTOR
Can any of the company-specific risk be diversified away by investing in both AGRICUL BK 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 AGRICUL BK and ELMOS SEMICONDUCTOR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGRICUL BK CHINA H and ELMOS SEMICONDUCTOR, you can compare the effects of market volatilities on AGRICUL BK 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 AGRICUL BK with a short position of ELMOS SEMICONDUCTOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRICUL BK and ELMOS SEMICONDUCTOR.
Diversification Opportunities for AGRICUL BK and ELMOS SEMICONDUCTOR
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AGRICUL and ELMOS is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding AGRICUL BK CHINA H and ELMOS SEMICONDUCTOR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ELMOS SEMICONDUCTOR and AGRICUL BK 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 AGRICUL BK CHINA H 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 AGRICUL BK i.e., AGRICUL BK and ELMOS SEMICONDUCTOR go up and down completely randomly.
Pair Corralation between AGRICUL BK and ELMOS SEMICONDUCTOR
Assuming the 90 days trading horizon AGRICUL BK CHINA H is expected to generate 0.79 times more return on investment than ELMOS SEMICONDUCTOR. However, AGRICUL BK CHINA H is 1.27 times less risky than ELMOS SEMICONDUCTOR. It trades about 0.2 of its potential returns per unit of risk. ELMOS SEMICONDUCTOR is currently generating about -0.12 per unit of risk. If you would invest 52.00 in AGRICUL BK CHINA H on December 1, 2024 and sell it today you would earn a total of 4.00 from holding AGRICUL BK CHINA H or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGRICUL BK CHINA H vs. ELMOS SEMICONDUCTOR
Performance |
| Timeline |
| AGRICUL BK CHINA |
| ELMOS SEMICONDUCTOR |
AGRICUL BK and ELMOS SEMICONDUCTOR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGRICUL BK and ELMOS SEMICONDUCTOR
The main advantage of trading using opposite AGRICUL BK and ELMOS SEMICONDUCTOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRICUL BK 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.| AGRICUL BK vs. Cognizant Technology Solutions | AGRICUL BK vs. ASM Pacific Technology | AGRICUL BK vs. FANDIFI TECHNOLOGY P | AGRICUL BK vs. Carnegie Clean Energy |
| ELMOS SEMICONDUCTOR vs. CARSALESCOM | ELMOS SEMICONDUCTOR vs. X FAB Silicon Foundries | ELMOS SEMICONDUCTOR vs. Cognizant Technology Solutions | ELMOS SEMICONDUCTOR vs. GEELY AUTOMOBILE |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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