Correlation Between Elmos Semiconductor and SYSTEMAIR
Can any of the company-specific risk be diversified away by investing in both Elmos Semiconductor and SYSTEMAIR 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 SYSTEMAIR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elmos Semiconductor SE and SYSTEMAIR AB, you can compare the effects of market volatilities on Elmos Semiconductor and SYSTEMAIR 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 SYSTEMAIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elmos Semiconductor and SYSTEMAIR.
Diversification Opportunities for Elmos Semiconductor and SYSTEMAIR
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Elmos and SYSTEMAIR is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Elmos Semiconductor SE and SYSTEMAIR AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SYSTEMAIR AB 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 SE are associated (or correlated) with SYSTEMAIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SYSTEMAIR AB has no effect on the direction of Elmos Semiconductor i.e., Elmos Semiconductor and SYSTEMAIR go up and down completely randomly.
Pair Corralation between Elmos Semiconductor and SYSTEMAIR
Assuming the 90 days trading horizon Elmos Semiconductor is expected to generate 10.93 times less return on investment than SYSTEMAIR. But when comparing it to its historical volatility, Elmos Semiconductor SE is 1.13 times less risky than SYSTEMAIR. It trades about 0.0 of its potential returns per unit of risk. SYSTEMAIR AB is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 463.00 in SYSTEMAIR AB on November 8, 2024 and sell it today you would earn a total of 260.00 from holding SYSTEMAIR AB or generate 56.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elmos Semiconductor SE vs. SYSTEMAIR AB
Performance |
| Timeline |
| Elmos Semiconductor |
| SYSTEMAIR AB |
Elmos Semiconductor and SYSTEMAIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elmos Semiconductor and SYSTEMAIR
The main advantage of trading using opposite Elmos Semiconductor and SYSTEMAIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elmos Semiconductor position performs unexpectedly, SYSTEMAIR 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 SYSTEMAIR will offset losses from the drop in SYSTEMAIR's long position.| Elmos Semiconductor vs. ULTRA CLEAN HLDGS | Elmos Semiconductor vs. ALERION CLEANPOWER | Elmos Semiconductor vs. UPDATE SOFTWARE | Elmos Semiconductor vs. Gol Intelligent Airlines |
| SYSTEMAIR vs. STRAYER EDUCATION | SYSTEMAIR vs. GREENX METALS LTD | SYSTEMAIR vs. Jacquet Metal Service | SYSTEMAIR vs. Grand Canyon Education |
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 Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |