Correlation Between Elmos Semiconductor and Lion One
Can any of the company-specific risk be diversified away by investing in both Elmos Semiconductor and Lion One 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 Lion One 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 Lion One Metals, you can compare the effects of market volatilities on Elmos Semiconductor and Lion One 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 Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elmos Semiconductor and Lion One.
Diversification Opportunities for Elmos Semiconductor and Lion One
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Elmos and Lion is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Elmos Semiconductor SE and Lion One Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion One Metals 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 Lion One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion One Metals has no effect on the direction of Elmos Semiconductor i.e., Elmos Semiconductor and Lion One go up and down completely randomly.
Pair Corralation between Elmos Semiconductor and Lion One
Assuming the 90 days trading horizon Elmos Semiconductor SE is expected to generate 1.21 times more return on investment than Lion One. However, Elmos Semiconductor is 1.21 times more volatile than Lion One Metals. It trades about 0.15 of its potential returns per unit of risk. Lion One Metals is currently generating about -0.04 per unit of risk. If you would invest 5,490 in Elmos Semiconductor SE on September 1, 2024 and sell it today you would earn a total of 720.00 from holding Elmos Semiconductor SE or generate 13.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elmos Semiconductor SE vs. Lion One Metals
Performance |
| Timeline |
| Elmos Semiconductor |
| Lion One Metals |
Elmos Semiconductor and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elmos Semiconductor and Lion One
The main advantage of trading using opposite Elmos Semiconductor and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elmos Semiconductor position performs unexpectedly, Lion One 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 Lion One will offset losses from the drop in Lion One's long position.| Elmos Semiconductor vs. AEON STORES | Elmos Semiconductor vs. Ross Stores | Elmos Semiconductor vs. PREMIER FOODS | Elmos Semiconductor vs. Vastned Retail NV |
| Lion One vs. NIPPON STEEL SPADR | Lion One vs. United States Steel | Lion One vs. Nippon Steel | Lion One vs. Singapore Telecommunications Limited |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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