Correlation Between ELMOS SEMICONDUCTOR and JIAHUA STORES
Can any of the company-specific risk be diversified away by investing in both ELMOS SEMICONDUCTOR and JIAHUA STORES 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 JIAHUA STORES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ELMOS SEMICONDUCTOR and JIAHUA STORES, you can compare the effects of market volatilities on ELMOS SEMICONDUCTOR and JIAHUA STORES 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 JIAHUA STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of ELMOS SEMICONDUCTOR and JIAHUA STORES.
Diversification Opportunities for ELMOS SEMICONDUCTOR and JIAHUA STORES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ELMOS and JIAHUA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ELMOS SEMICONDUCTOR and JIAHUA STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIAHUA STORES 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 JIAHUA STORES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JIAHUA STORES has no effect on the direction of ELMOS SEMICONDUCTOR i.e., ELMOS SEMICONDUCTOR and JIAHUA STORES go up and down completely randomly.
Pair Corralation between ELMOS SEMICONDUCTOR and JIAHUA STORES
If you would invest 6,670 in ELMOS SEMICONDUCTOR on October 12, 2024 and sell it today you would earn a total of 1,170 from holding ELMOS SEMICONDUCTOR or generate 17.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
ELMOS SEMICONDUCTOR vs. JIAHUA STORES
Performance |
| Timeline |
| ELMOS SEMICONDUCTOR |
| JIAHUA STORES |
ELMOS SEMICONDUCTOR and JIAHUA STORES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ELMOS SEMICONDUCTOR and JIAHUA STORES
The main advantage of trading using opposite ELMOS SEMICONDUCTOR and JIAHUA STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ELMOS SEMICONDUCTOR position performs unexpectedly, JIAHUA STORES 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 JIAHUA STORES will offset losses from the drop in JIAHUA STORES's long position.| ELMOS SEMICONDUCTOR vs. NTG Nordic Transport | ELMOS SEMICONDUCTOR vs. CyberArk Software | ELMOS SEMICONDUCTOR vs. VITEC SOFTWARE GROUP | ELMOS SEMICONDUCTOR vs. SCIENCE IN SPORT |
| JIAHUA STORES vs. NXP Semiconductors NV | JIAHUA STORES vs. ELMOS SEMICONDUCTOR | JIAHUA STORES vs. MagnaChip Semiconductor Corp | JIAHUA STORES vs. Universal Insurance Holdings |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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