Correlation Between Elmos Semiconductor and CEOTRONICS (CEKSG)
Can any of the company-specific risk be diversified away by investing in both Elmos Semiconductor and CEOTRONICS (CEKSG) 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 CEOTRONICS (CEKSG) 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 CEOTRONICS, you can compare the effects of market volatilities on Elmos Semiconductor and CEOTRONICS (CEKSG) 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 CEOTRONICS (CEKSG). Check out your portfolio center. Please also check ongoing floating volatility patterns of Elmos Semiconductor and CEOTRONICS (CEKSG).
Diversification Opportunities for Elmos Semiconductor and CEOTRONICS (CEKSG)
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Elmos and CEOTRONICS is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Elmos Semiconductor SE and CEOTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEOTRONICS (CEKSG) 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 CEOTRONICS (CEKSG). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEOTRONICS (CEKSG) has no effect on the direction of Elmos Semiconductor i.e., Elmos Semiconductor and CEOTRONICS (CEKSG) go up and down completely randomly.
Pair Corralation between Elmos Semiconductor and CEOTRONICS (CEKSG)
Assuming the 90 days trading horizon Elmos Semiconductor SE is expected to under-perform the CEOTRONICS (CEKSG). But the stock apears to be less risky and, when comparing its historical volatility, Elmos Semiconductor SE is 1.13 times less risky than CEOTRONICS (CEKSG). The stock trades about -0.11 of its potential returns per unit of risk. The CEOTRONICS is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 605.00 in CEOTRONICS on November 28, 2024 and sell it today you would earn a total of 95.00 from holding CEOTRONICS or generate 15.7% 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. CEOTRONICS
Performance |
| Timeline |
| Elmos Semiconductor |
| CEOTRONICS (CEKSG) |
Elmos Semiconductor and CEOTRONICS (CEKSG) Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elmos Semiconductor and CEOTRONICS (CEKSG)
The main advantage of trading using opposite Elmos Semiconductor and CEOTRONICS (CEKSG) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elmos Semiconductor position performs unexpectedly, CEOTRONICS (CEKSG) 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 CEOTRONICS (CEKSG) will offset losses from the drop in CEOTRONICS (CEKSG)'s long position.| Elmos Semiconductor vs. Perdoceo Education | Elmos Semiconductor vs. Aegean Airlines SA | Elmos Semiconductor vs. International Consolidated Airlines | Elmos Semiconductor vs. EMBARK EDUCATION LTD |
| CEOTRONICS (CEKSG) vs. American Public Education | CEOTRONICS (CEKSG) vs. Apollo Investment Corp | CEOTRONICS (CEKSG) vs. Japan Asia Investment | CEOTRONICS (CEKSG) vs. EMBARK EDUCATION LTD |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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