Correlation Between Elmos Semiconductor and KRISPY KREME
Can any of the company-specific risk be diversified away by investing in both Elmos Semiconductor and KRISPY KREME 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 KRISPY KREME 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 KRISPY KREME DL 01, you can compare the effects of market volatilities on Elmos Semiconductor and KRISPY KREME 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 KRISPY KREME. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elmos Semiconductor and KRISPY KREME.
Diversification Opportunities for Elmos Semiconductor and KRISPY KREME
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Elmos and KRISPY is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Elmos Semiconductor SE and KRISPY KREME DL 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KRISPY KREME DL 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 KRISPY KREME. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KRISPY KREME DL has no effect on the direction of Elmos Semiconductor i.e., Elmos Semiconductor and KRISPY KREME go up and down completely randomly.
Pair Corralation between Elmos Semiconductor and KRISPY KREME
Assuming the 90 days trading horizon Elmos Semiconductor SE is expected to generate 0.8 times more return on investment than KRISPY KREME. However, Elmos Semiconductor SE is 1.24 times less risky than KRISPY KREME. It trades about 0.01 of its potential returns per unit of risk. KRISPY KREME DL 01 is currently generating about -0.02 per unit of risk. If you would invest 6,766 in Elmos Semiconductor SE on October 7, 2024 and sell it today you would earn a total of 64.00 from holding Elmos Semiconductor SE or generate 0.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elmos Semiconductor SE vs. KRISPY KREME DL 01
Performance |
| Timeline |
| Elmos Semiconductor |
| KRISPY KREME DL |
Elmos Semiconductor and KRISPY KREME Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elmos Semiconductor and KRISPY KREME
The main advantage of trading using opposite Elmos Semiconductor and KRISPY KREME positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elmos Semiconductor position performs unexpectedly, KRISPY KREME 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 KRISPY KREME will offset losses from the drop in KRISPY KREME's long position.| Elmos Semiconductor vs. PROSIEBENSAT1 MEDIADR4 | Elmos Semiconductor vs. Linedata Services SA | Elmos Semiconductor vs. Pure Storage | Elmos Semiconductor vs. PARKEN Sport Entertainment |
| KRISPY KREME vs. Molina Healthcare | KRISPY KREME vs. Cardinal Health | KRISPY KREME vs. PURETECH HEALTH PLC | KRISPY KREME vs. PENN NATL GAMING |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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