Correlation Between Elmos Semiconductor and J+J SNACK
Can any of the company-specific risk be diversified away by investing in both Elmos Semiconductor and J+J SNACK 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 J+J SNACK 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 JJ SNACK FOODS, you can compare the effects of market volatilities on Elmos Semiconductor and J+J SNACK 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 J+J SNACK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elmos Semiconductor and J+J SNACK.
Diversification Opportunities for Elmos Semiconductor and J+J SNACK
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Elmos and J+J is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Elmos Semiconductor SE and JJ SNACK FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JJ SNACK FOODS 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 J+J SNACK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JJ SNACK FOODS has no effect on the direction of Elmos Semiconductor i.e., Elmos Semiconductor and J+J SNACK go up and down completely randomly.
Pair Corralation between Elmos Semiconductor and J+J SNACK
Assuming the 90 days trading horizon Elmos Semiconductor SE is expected to generate 2.19 times more return on investment than J+J SNACK. However, Elmos Semiconductor is 2.19 times more volatile than JJ SNACK FOODS. It trades about 0.03 of its potential returns per unit of risk. JJ SNACK FOODS is currently generating about 0.03 per unit of risk. If you would invest 5,497 in Elmos Semiconductor SE on September 12, 2024 and sell it today you would earn a total of 1,253 from holding Elmos Semiconductor SE or generate 22.79% 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. JJ SNACK FOODS
Performance |
| Timeline |
| Elmos Semiconductor |
| JJ SNACK FOODS |
Elmos Semiconductor and J+J SNACK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elmos Semiconductor and J+J SNACK
The main advantage of trading using opposite Elmos Semiconductor and J+J SNACK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elmos Semiconductor position performs unexpectedly, J+J SNACK 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 J+J SNACK will offset losses from the drop in J+J SNACK'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 |
| J+J SNACK vs. Hormel Foods | J+J SNACK vs. Superior Plus Corp | J+J SNACK vs. SIVERS SEMICONDUCTORS AB | J+J SNACK vs. NorAm Drilling AS |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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