Correlation Between ELMOS SEMICONDUCTOR and Expedia
Can any of the company-specific risk be diversified away by investing in both ELMOS SEMICONDUCTOR and Expedia 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 Expedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ELMOS SEMICONDUCTOR and Expedia Group, you can compare the effects of market volatilities on ELMOS SEMICONDUCTOR and Expedia 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 Expedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of ELMOS SEMICONDUCTOR and Expedia.
Diversification Opportunities for ELMOS SEMICONDUCTOR and Expedia
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ELMOS and Expedia is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding ELMOS SEMICONDUCTOR and Expedia Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expedia Group 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 Expedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expedia Group has no effect on the direction of ELMOS SEMICONDUCTOR i.e., ELMOS SEMICONDUCTOR and Expedia go up and down completely randomly.
Pair Corralation between ELMOS SEMICONDUCTOR and Expedia
Assuming the 90 days trading horizon ELMOS SEMICONDUCTOR is expected to generate 4.21 times less return on investment than Expedia. In addition to that, ELMOS SEMICONDUCTOR is 1.5 times more volatile than Expedia Group. It trades about 0.04 of its total potential returns per unit of risk. Expedia Group is currently generating about 0.26 per unit of volatility. If you would invest 14,940 in Expedia Group on August 28, 2024 and sell it today you would earn a total of 2,618 from holding Expedia Group or generate 17.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ELMOS SEMICONDUCTOR vs. Expedia Group
Performance |
| Timeline |
| ELMOS SEMICONDUCTOR |
| Expedia Group |
ELMOS SEMICONDUCTOR and Expedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ELMOS SEMICONDUCTOR and Expedia
The main advantage of trading using opposite ELMOS SEMICONDUCTOR and Expedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ELMOS SEMICONDUCTOR position performs unexpectedly, Expedia 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 Expedia will offset losses from the drop in Expedia's long position.| ELMOS SEMICONDUCTOR vs. Computershare Limited | ELMOS SEMICONDUCTOR vs. The Home Depot | ELMOS SEMICONDUCTOR vs. INVITATION HOMES DL | ELMOS SEMICONDUCTOR vs. MI Homes |
| Expedia vs. Playtech plc | Expedia vs. Molson Coors Beverage | Expedia vs. PLAYTIKA HOLDING DL 01 | Expedia vs. JD SPORTS FASH |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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