Correlation Between Elmos Semiconductor and SLR Investment
Can any of the company-specific risk be diversified away by investing in both Elmos Semiconductor and SLR Investment 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 SLR Investment 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 SLR Investment Corp, you can compare the effects of market volatilities on Elmos Semiconductor and SLR Investment 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 SLR Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elmos Semiconductor and SLR Investment.
Diversification Opportunities for Elmos Semiconductor and SLR Investment
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Elmos and SLR is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Elmos Semiconductor SE and SLR Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SLR Investment Corp 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 SLR Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SLR Investment Corp has no effect on the direction of Elmos Semiconductor i.e., Elmos Semiconductor and SLR Investment go up and down completely randomly.
Pair Corralation between Elmos Semiconductor and SLR Investment
Assuming the 90 days trading horizon Elmos Semiconductor SE is expected to generate 2.91 times more return on investment than SLR Investment. However, Elmos Semiconductor is 2.91 times more volatile than SLR Investment Corp. It trades about -0.02 of its potential returns per unit of risk. SLR Investment Corp is currently generating about -0.13 per unit of risk. If you would invest 6,820 in Elmos Semiconductor SE on December 10, 2024 and sell it today you would lose (160.00) from holding Elmos Semiconductor SE or give up 2.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elmos Semiconductor SE vs. SLR Investment Corp
Performance |
| Timeline |
| Elmos Semiconductor |
| SLR Investment Corp |
Elmos Semiconductor and SLR Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elmos Semiconductor and SLR Investment
The main advantage of trading using opposite Elmos Semiconductor and SLR Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elmos Semiconductor position performs unexpectedly, SLR Investment 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 SLR Investment will offset losses from the drop in SLR Investment's long position.| Elmos Semiconductor vs. ANGLO ASIAN MINING | Elmos Semiconductor vs. RESMINING UNSPADR10 | Elmos Semiconductor vs. Carsales | Elmos Semiconductor vs. MUTUIONLINE |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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