Correlation Between ELMOS SEMICONDUCTOR and International Bancshares
Can any of the company-specific risk be diversified away by investing in both ELMOS SEMICONDUCTOR and International Bancshares 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 International Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ELMOS SEMICONDUCTOR and International Bancshares, you can compare the effects of market volatilities on ELMOS SEMICONDUCTOR and International Bancshares 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 International Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of ELMOS SEMICONDUCTOR and International Bancshares.
Diversification Opportunities for ELMOS SEMICONDUCTOR and International Bancshares
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ELMOS and International is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding ELMOS SEMICONDUCTOR and International Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Bancshares 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 International Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Bancshares has no effect on the direction of ELMOS SEMICONDUCTOR i.e., ELMOS SEMICONDUCTOR and International Bancshares go up and down completely randomly.
Pair Corralation between ELMOS SEMICONDUCTOR and International Bancshares
Assuming the 90 days trading horizon ELMOS SEMICONDUCTOR is expected to generate 1.17 times less return on investment than International Bancshares. In addition to that, ELMOS SEMICONDUCTOR is 2.51 times more volatile than International Bancshares. It trades about 0.07 of its total potential returns per unit of risk. International Bancshares is currently generating about 0.21 per unit of volatility. If you would invest 6,050 in International Bancshares on November 4, 2024 and sell it today you would earn a total of 400.00 from holding International Bancshares or generate 6.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ELMOS SEMICONDUCTOR vs. International Bancshares
Performance |
| Timeline |
| ELMOS SEMICONDUCTOR |
| International Bancshares |
ELMOS SEMICONDUCTOR and International Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ELMOS SEMICONDUCTOR and International Bancshares
The main advantage of trading using opposite ELMOS SEMICONDUCTOR and International Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ELMOS SEMICONDUCTOR position performs unexpectedly, International Bancshares 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 International Bancshares will offset losses from the drop in International Bancshares' long position.| ELMOS SEMICONDUCTOR vs. SEKISUI CHEMICAL | ELMOS SEMICONDUCTOR vs. INDO RAMA SYNTHETIC | ELMOS SEMICONDUCTOR vs. WESANA HEALTH HOLD | ELMOS SEMICONDUCTOR vs. Soken Chemical Engineering |
| International Bancshares vs. POSBO UNSPADRS20YC1 | International Bancshares vs. Postal Savings Bank | International Bancshares vs. Oversea Chinese Banking | International Bancshares vs. UNICREDIT SPA ADR |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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