Correlation Between Elmos Semiconductor and Comstock Holding
Can any of the company-specific risk be diversified away by investing in both Elmos Semiconductor and Comstock Holding 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 Comstock Holding 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 Comstock Holding Companies, you can compare the effects of market volatilities on Elmos Semiconductor and Comstock Holding 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 Comstock Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elmos Semiconductor and Comstock Holding.
Diversification Opportunities for Elmos Semiconductor and Comstock Holding
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Elmos and Comstock is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Elmos Semiconductor SE and Comstock Holding Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comstock Holding Com 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 Comstock Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comstock Holding Com has no effect on the direction of Elmos Semiconductor i.e., Elmos Semiconductor and Comstock Holding go up and down completely randomly.
Pair Corralation between Elmos Semiconductor and Comstock Holding
Assuming the 90 days trading horizon Elmos Semiconductor is expected to generate 2.39 times less return on investment than Comstock Holding. But when comparing it to its historical volatility, Elmos Semiconductor SE is 1.45 times less risky than Comstock Holding. It trades about 0.03 of its potential returns per unit of risk. Comstock Holding Companies is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 375.00 in Comstock Holding Companies on September 19, 2024 and sell it today you would earn a total of 360.00 from holding Comstock Holding Companies or generate 96.0% 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. Comstock Holding Companies
Performance |
| Timeline |
| Elmos Semiconductor |
| Comstock Holding Com |
Elmos Semiconductor and Comstock Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elmos Semiconductor and Comstock Holding
The main advantage of trading using opposite Elmos Semiconductor and Comstock Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elmos Semiconductor position performs unexpectedly, Comstock Holding 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 Comstock Holding will offset losses from the drop in Comstock Holding's long position.| Elmos Semiconductor vs. Taiwan Semiconductor Manufacturing | Elmos Semiconductor vs. Broadcom | Elmos Semiconductor vs. Superior Plus Corp | Elmos Semiconductor vs. Norsk Hydro ASA |
| Comstock Holding vs. GRUPO CARSO A1 | Comstock Holding vs. Elmos Semiconductor SE | Comstock Holding vs. Carsales | Comstock Holding vs. 24SEVENOFFICE GROUP AB |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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