Correlation Between Elmos Semiconductor and JSC Halyk
Can any of the company-specific risk be diversified away by investing in both Elmos Semiconductor and JSC Halyk 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 JSC Halyk 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 JSC Halyk bank, you can compare the effects of market volatilities on Elmos Semiconductor and JSC Halyk 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 JSC Halyk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elmos Semiconductor and JSC Halyk.
Diversification Opportunities for Elmos Semiconductor and JSC Halyk
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Elmos and JSC is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Elmos Semiconductor SE and JSC Halyk bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JSC Halyk bank 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 JSC Halyk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JSC Halyk bank has no effect on the direction of Elmos Semiconductor i.e., Elmos Semiconductor and JSC Halyk go up and down completely randomly.
Pair Corralation between Elmos Semiconductor and JSC Halyk
Assuming the 90 days trading horizon Elmos Semiconductor SE is expected to under-perform the JSC Halyk. But the stock apears to be less risky and, when comparing its historical volatility, Elmos Semiconductor SE is 1.39 times less risky than JSC Halyk. The stock trades about -0.02 of its potential returns per unit of risk. The JSC Halyk bank is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,156 in JSC Halyk bank on September 4, 2024 and sell it today you would earn a total of 584.00 from holding JSC Halyk bank or generate 50.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Elmos Semiconductor SE vs. JSC Halyk bank
Performance |
| Timeline |
| Elmos Semiconductor |
| JSC Halyk bank |
Elmos Semiconductor and JSC Halyk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elmos Semiconductor and JSC Halyk
The main advantage of trading using opposite Elmos Semiconductor and JSC Halyk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elmos Semiconductor position performs unexpectedly, JSC Halyk 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 JSC Halyk will offset losses from the drop in JSC Halyk's long position.| Elmos Semiconductor vs. NVIDIA | Elmos Semiconductor vs. Taiwan Semiconductor Manufacturing | Elmos Semiconductor vs. Advanced Micro Devices | Elmos Semiconductor vs. Intel |
| JSC Halyk vs. Australian Agricultural | JSC Halyk vs. SERI INDUSTRIAL EO | JSC Halyk vs. GALENA MINING LTD | JSC Halyk vs. Titan Machinery |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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