Correlation Between Elmos Semiconductor and EAGLE MATERIALS
Can any of the company-specific risk be diversified away by investing in both Elmos Semiconductor and EAGLE MATERIALS 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 EAGLE MATERIALS 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 EAGLE MATERIALS, you can compare the effects of market volatilities on Elmos Semiconductor and EAGLE MATERIALS 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 EAGLE MATERIALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elmos Semiconductor and EAGLE MATERIALS.
Diversification Opportunities for Elmos Semiconductor and EAGLE MATERIALS
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Elmos and EAGLE is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Elmos Semiconductor SE and EAGLE MATERIALS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EAGLE MATERIALS 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 EAGLE MATERIALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EAGLE MATERIALS has no effect on the direction of Elmos Semiconductor i.e., Elmos Semiconductor and EAGLE MATERIALS go up and down completely randomly.
Pair Corralation between Elmos Semiconductor and EAGLE MATERIALS
Assuming the 90 days trading horizon Elmos Semiconductor is expected to generate 1.76 times less return on investment than EAGLE MATERIALS. In addition to that, Elmos Semiconductor is 1.83 times more volatile than EAGLE MATERIALS. It trades about 0.06 of its total potential returns per unit of risk. EAGLE MATERIALS is currently generating about 0.2 per unit of volatility. If you would invest 26,600 in EAGLE MATERIALS on August 29, 2024 and sell it today you would earn a total of 3,000 from holding EAGLE MATERIALS or generate 11.28% 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. EAGLE MATERIALS
Performance |
| Timeline |
| Elmos Semiconductor |
| EAGLE MATERIALS |
Elmos Semiconductor and EAGLE MATERIALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elmos Semiconductor and EAGLE MATERIALS
The main advantage of trading using opposite Elmos Semiconductor and EAGLE MATERIALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elmos Semiconductor position performs unexpectedly, EAGLE MATERIALS 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 EAGLE MATERIALS will offset losses from the drop in EAGLE MATERIALS's long position.| Elmos Semiconductor vs. NVIDIA | Elmos Semiconductor vs. Taiwan Semiconductor Manufacturing | Elmos Semiconductor vs. Texas Instruments Incorporated | Elmos Semiconductor vs. Advanced Micro Devices |
| EAGLE MATERIALS vs. Apple Inc | EAGLE MATERIALS vs. Apple Inc | EAGLE MATERIALS vs. Superior Plus Corp | EAGLE MATERIALS vs. SIVERS SEMICONDUCTORS 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |