Correlation Between Elmos Semiconductor and Gold Road
Can any of the company-specific risk be diversified away by investing in both Elmos Semiconductor and Gold Road 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 Gold Road 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 Gold Road Resources, you can compare the effects of market volatilities on Elmos Semiconductor and Gold Road 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 Gold Road. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elmos Semiconductor and Gold Road.
Diversification Opportunities for Elmos Semiconductor and Gold Road
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Elmos and Gold is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Elmos Semiconductor SE and Gold Road Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Road Resources 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 Gold Road. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Road Resources has no effect on the direction of Elmos Semiconductor i.e., Elmos Semiconductor and Gold Road go up and down completely randomly.
Pair Corralation between Elmos Semiconductor and Gold Road
Assuming the 90 days trading horizon Elmos Semiconductor SE is expected to generate 1.89 times more return on investment than Gold Road. However, Elmos Semiconductor is 1.89 times more volatile than Gold Road Resources. It trades about 0.13 of its potential returns per unit of risk. Gold Road Resources is currently generating about 0.03 per unit of risk. If you would invest 5,590 in Elmos Semiconductor SE on September 2, 2024 and sell it today you would earn a total of 620.00 from holding Elmos Semiconductor SE or generate 11.09% 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. Gold Road Resources
Performance |
| Timeline |
| Elmos Semiconductor |
| Gold Road Resources |
Elmos Semiconductor and Gold Road Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elmos Semiconductor and Gold Road
The main advantage of trading using opposite Elmos Semiconductor and Gold Road positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elmos Semiconductor position performs unexpectedly, Gold Road 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 Gold Road will offset losses from the drop in Gold Road's long position.| Elmos Semiconductor vs. Sixt Leasing SE | Elmos Semiconductor vs. IMPERIAL TOBACCO | Elmos Semiconductor vs. Perseus Mining Limited | Elmos Semiconductor vs. WILLIS LEASE FIN |
| Gold Road vs. Broadcom | Gold Road vs. Liberty Broadband | Gold Road vs. BURLINGTON STORES | Gold Road 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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