Correlation Between ELMOS SEMICONDUCTOR and Great Portland
Can any of the company-specific risk be diversified away by investing in both ELMOS SEMICONDUCTOR and Great Portland 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 Great Portland into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ELMOS SEMICONDUCTOR and Great Portland Estates, you can compare the effects of market volatilities on ELMOS SEMICONDUCTOR and Great Portland 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 Great Portland. Check out your portfolio center. Please also check ongoing floating volatility patterns of ELMOS SEMICONDUCTOR and Great Portland.
Diversification Opportunities for ELMOS SEMICONDUCTOR and Great Portland
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ELMOS and Great is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding ELMOS SEMICONDUCTOR and Great Portland Estates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Portland Estates 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 Great Portland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Portland Estates has no effect on the direction of ELMOS SEMICONDUCTOR i.e., ELMOS SEMICONDUCTOR and Great Portland go up and down completely randomly.
Pair Corralation between ELMOS SEMICONDUCTOR and Great Portland
Assuming the 90 days trading horizon ELMOS SEMICONDUCTOR is expected to generate 4.51 times less return on investment than Great Portland. In addition to that, ELMOS SEMICONDUCTOR is 2.21 times more volatile than Great Portland Estates. It trades about 0.01 of its total potential returns per unit of risk. Great Portland Estates is currently generating about 0.13 per unit of volatility. If you would invest 353.00 in Great Portland Estates on September 14, 2024 and sell it today you would earn a total of 13.00 from holding Great Portland Estates or generate 3.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ELMOS SEMICONDUCTOR vs. Great Portland Estates
Performance |
| Timeline |
| ELMOS SEMICONDUCTOR |
| Great Portland Estates |
ELMOS SEMICONDUCTOR and Great Portland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ELMOS SEMICONDUCTOR and Great Portland
The main advantage of trading using opposite ELMOS SEMICONDUCTOR and Great Portland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ELMOS SEMICONDUCTOR position performs unexpectedly, Great Portland 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 Great Portland will offset losses from the drop in Great Portland's long position.| ELMOS SEMICONDUCTOR vs. Apple Inc | ELMOS SEMICONDUCTOR vs. Apple Inc | ELMOS SEMICONDUCTOR vs. Apple Inc | ELMOS SEMICONDUCTOR vs. Apple Inc |
| Great Portland vs. Caltagirone SpA | Great Portland vs. ELMOS SEMICONDUCTOR | Great Portland vs. GEAR4MUSIC LS 10 | Great Portland vs. Khiron Life Sciences |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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