Correlation Between Elmos Semiconductor and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both Elmos Semiconductor and MCEWEN MINING 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 MCEWEN MINING 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 MCEWEN MINING INC, you can compare the effects of market volatilities on Elmos Semiconductor and MCEWEN MINING 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 MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elmos Semiconductor and MCEWEN MINING.
Diversification Opportunities for Elmos Semiconductor and MCEWEN MINING
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Elmos and MCEWEN is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Elmos Semiconductor SE and MCEWEN MINING INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCEWEN MINING INC 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 MCEWEN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCEWEN MINING INC has no effect on the direction of Elmos Semiconductor i.e., Elmos Semiconductor and MCEWEN MINING go up and down completely randomly.
Pair Corralation between Elmos Semiconductor and MCEWEN MINING
Assuming the 90 days trading horizon Elmos Semiconductor SE is expected to generate 1.14 times more return on investment than MCEWEN MINING. However, Elmos Semiconductor is 1.14 times more volatile than MCEWEN MINING INC. It trades about 0.15 of its potential returns per unit of risk. MCEWEN MINING INC is currently generating about -0.24 per unit of risk. If you would invest 5,460 in Elmos Semiconductor SE on August 31, 2024 and sell it today you would earn a total of 750.00 from holding Elmos Semiconductor SE or generate 13.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Elmos Semiconductor SE vs. MCEWEN MINING INC
Performance |
| Timeline |
| Elmos Semiconductor |
| MCEWEN MINING INC |
Elmos Semiconductor and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elmos Semiconductor and MCEWEN MINING
The main advantage of trading using opposite Elmos Semiconductor and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elmos Semiconductor position performs unexpectedly, MCEWEN MINING 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 MCEWEN MINING will offset losses from the drop in MCEWEN MINING's long position.| Elmos Semiconductor vs. NVIDIA | Elmos Semiconductor vs. Taiwan Semiconductor Manufacturing | Elmos Semiconductor vs. Intel |
| MCEWEN MINING vs. BLUESCOPE STEEL | MCEWEN MINING vs. MEDICAL FACILITIES NEW | MCEWEN MINING vs. IMAGIN MEDICAL INC | MCEWEN MINING vs. Avanos Medical |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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