Correlation Between ELMOS SEMICONDUCTOR and Graham Holdings
Can any of the company-specific risk be diversified away by investing in both ELMOS SEMICONDUCTOR and Graham Holdings 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 Graham Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ELMOS SEMICONDUCTOR and Graham Holdings Co, you can compare the effects of market volatilities on ELMOS SEMICONDUCTOR and Graham Holdings 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 Graham Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of ELMOS SEMICONDUCTOR and Graham Holdings.
Diversification Opportunities for ELMOS SEMICONDUCTOR and Graham Holdings
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between ELMOS and Graham is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding ELMOS SEMICONDUCTOR and Graham Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graham Holdings 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 Graham Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graham Holdings has no effect on the direction of ELMOS SEMICONDUCTOR i.e., ELMOS SEMICONDUCTOR and Graham Holdings go up and down completely randomly.
Pair Corralation between ELMOS SEMICONDUCTOR and Graham Holdings
Assuming the 90 days trading horizon ELMOS SEMICONDUCTOR is expected to under-perform the Graham Holdings. In addition to that, ELMOS SEMICONDUCTOR is 1.92 times more volatile than Graham Holdings Co. It trades about -0.17 of its total potential returns per unit of risk. Graham Holdings Co is currently generating about 0.12 per unit of volatility. If you would invest 85,827 in Graham Holdings Co on November 7, 2024 and sell it today you would earn a total of 2,673 from holding Graham Holdings Co or generate 3.11% 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. Graham Holdings Co
Performance |
| Timeline |
| ELMOS SEMICONDUCTOR |
| Graham Holdings |
ELMOS SEMICONDUCTOR and Graham Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ELMOS SEMICONDUCTOR and Graham Holdings
The main advantage of trading using opposite ELMOS SEMICONDUCTOR and Graham Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ELMOS SEMICONDUCTOR position performs unexpectedly, Graham Holdings 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 Graham Holdings will offset losses from the drop in Graham Holdings' long position.| ELMOS SEMICONDUCTOR vs. ARISTOCRAT LEISURE | ELMOS SEMICONDUCTOR vs. Aristocrat Leisure Limited | ELMOS SEMICONDUCTOR vs. PLAYTIKA HOLDING DL 01 | ELMOS SEMICONDUCTOR vs. Genertec Universal Medical |
| Graham Holdings vs. IDP EDUCATION LTD | Graham Holdings vs. TAL Education Group | Graham Holdings vs. Strategic Education | Graham Holdings vs. Chegg Inc |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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