Correlation Between Elmos Semiconductor and CSX
Can any of the company-specific risk be diversified away by investing in both Elmos Semiconductor and CSX 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 CSX 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 CSX Corporation, you can compare the effects of market volatilities on Elmos Semiconductor and CSX 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 CSX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elmos Semiconductor and CSX.
Diversification Opportunities for Elmos Semiconductor and CSX
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Elmos and CSX is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Elmos Semiconductor SE and CSX Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSX Corporation 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 CSX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSX Corporation has no effect on the direction of Elmos Semiconductor i.e., Elmos Semiconductor and CSX go up and down completely randomly.
Pair Corralation between Elmos Semiconductor and CSX
Assuming the 90 days trading horizon Elmos Semiconductor SE is expected to generate 1.79 times more return on investment than CSX. However, Elmos Semiconductor is 1.79 times more volatile than CSX Corporation. It trades about 0.02 of its potential returns per unit of risk. CSX Corporation is currently generating about -0.23 per unit of risk. If you would invest 6,770 in Elmos Semiconductor SE on September 15, 2024 and sell it today you would earn a total of 40.00 from holding Elmos Semiconductor SE or generate 0.59% 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. CSX Corp.
Performance |
| Timeline |
| Elmos Semiconductor |
| CSX Corporation |
Elmos Semiconductor and CSX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elmos Semiconductor and CSX
The main advantage of trading using opposite Elmos Semiconductor and CSX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elmos Semiconductor position performs unexpectedly, CSX 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 CSX will offset losses from the drop in CSX's long position.| Elmos Semiconductor vs. Taiwan Semiconductor Manufacturing | Elmos Semiconductor vs. Broadcom | Elmos Semiconductor vs. Superior Plus Corp | Elmos Semiconductor vs. SIVERS SEMICONDUCTORS AB |
| CSX vs. GRIFFIN MINING LTD | CSX vs. Taiwan Semiconductor Manufacturing | CSX vs. GREENX METALS LTD | CSX vs. Elmos Semiconductor SE |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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