Correlation Between HOCHSCHILD MINING and Elmos Semiconductor
Can any of the company-specific risk be diversified away by investing in both HOCHSCHILD MINING and Elmos Semiconductor 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 HOCHSCHILD MINING and Elmos Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HOCHSCHILD MINING and Elmos Semiconductor SE, you can compare the effects of market volatilities on HOCHSCHILD MINING and Elmos Semiconductor 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 HOCHSCHILD MINING with a short position of Elmos Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of HOCHSCHILD MINING and Elmos Semiconductor.
Diversification Opportunities for HOCHSCHILD MINING and Elmos Semiconductor
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HOCHSCHILD and Elmos is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding HOCHSCHILD MINING and Elmos Semiconductor SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elmos Semiconductor and HOCHSCHILD MINING 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 HOCHSCHILD MINING are associated (or correlated) with Elmos Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elmos Semiconductor has no effect on the direction of HOCHSCHILD MINING i.e., HOCHSCHILD MINING and Elmos Semiconductor go up and down completely randomly.
Pair Corralation between HOCHSCHILD MINING and Elmos Semiconductor
Assuming the 90 days trading horizon HOCHSCHILD MINING is expected to generate 1.28 times more return on investment than Elmos Semiconductor. However, HOCHSCHILD MINING is 1.28 times more volatile than Elmos Semiconductor SE. It trades about 0.1 of its potential returns per unit of risk. Elmos Semiconductor SE is currently generating about 0.01 per unit of risk. If you would invest 84.00 in HOCHSCHILD MINING on August 29, 2024 and sell it today you would earn a total of 166.00 from holding HOCHSCHILD MINING or generate 197.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HOCHSCHILD MINING vs. Elmos Semiconductor SE
Performance |
| Timeline |
| HOCHSCHILD MINING |
| Elmos Semiconductor |
HOCHSCHILD MINING and Elmos Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HOCHSCHILD MINING and Elmos Semiconductor
The main advantage of trading using opposite HOCHSCHILD MINING and Elmos Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HOCHSCHILD MINING position performs unexpectedly, Elmos Semiconductor 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 Elmos Semiconductor will offset losses from the drop in Elmos Semiconductor's long position.| HOCHSCHILD MINING vs. Brockhaus Capital Management | HOCHSCHILD MINING vs. Hisense Home Appliances | HOCHSCHILD MINING vs. 24SEVENOFFICE GROUP AB | HOCHSCHILD MINING vs. Jupiter Fund Management |
| Elmos Semiconductor vs. NVIDIA | Elmos Semiconductor vs. NVIDIA | Elmos Semiconductor vs. QUALCOMM Incorporated | Elmos Semiconductor vs. Intel |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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