Correlation Between ELMOS SEMICONDUCTOR and Dollar General
Can any of the company-specific risk be diversified away by investing in both ELMOS SEMICONDUCTOR and Dollar General 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 Dollar General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ELMOS SEMICONDUCTOR and Dollar General, you can compare the effects of market volatilities on ELMOS SEMICONDUCTOR and Dollar General 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 Dollar General. Check out your portfolio center. Please also check ongoing floating volatility patterns of ELMOS SEMICONDUCTOR and Dollar General.
Diversification Opportunities for ELMOS SEMICONDUCTOR and Dollar General
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ELMOS and Dollar is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding ELMOS SEMICONDUCTOR and Dollar General in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dollar General 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 are associated (or correlated) with Dollar General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dollar General has no effect on the direction of ELMOS SEMICONDUCTOR i.e., ELMOS SEMICONDUCTOR and Dollar General go up and down completely randomly.
Pair Corralation between ELMOS SEMICONDUCTOR and Dollar General
Assuming the 90 days trading horizon ELMOS SEMICONDUCTOR is expected to under-perform the Dollar General. In addition to that, ELMOS SEMICONDUCTOR is 1.21 times more volatile than Dollar General. It trades about -0.22 of its total potential returns per unit of risk. Dollar General is currently generating about -0.02 per unit of volatility. If you would invest 6,962 in Dollar General on November 9, 2024 and sell it today you would lose (78.00) from holding Dollar General or give up 1.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ELMOS SEMICONDUCTOR vs. Dollar General
Performance |
| Timeline |
| ELMOS SEMICONDUCTOR |
| Dollar General |
ELMOS SEMICONDUCTOR and Dollar General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ELMOS SEMICONDUCTOR and Dollar General
The main advantage of trading using opposite ELMOS SEMICONDUCTOR and Dollar General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ELMOS SEMICONDUCTOR position performs unexpectedly, Dollar General 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 Dollar General will offset losses from the drop in Dollar General's long position.| ELMOS SEMICONDUCTOR vs. Jacquet Metal Service | ELMOS SEMICONDUCTOR vs. CORNISH METALS INC | ELMOS SEMICONDUCTOR vs. MAANSHAN IRON H | ELMOS SEMICONDUCTOR vs. Nippon Light Metal |
| Dollar General vs. Universal Health Realty | Dollar General vs. SIEM OFFSHORE NEW | Dollar General vs. WESANA HEALTH HOLD | Dollar General vs. Sunny Optical Technology |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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