Correlation Between Pembina Pipeline and Elmos Semiconductor
Can any of the company-specific risk be diversified away by investing in both Pembina Pipeline 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 Pembina Pipeline and Elmos Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pembina Pipeline Corp and Elmos Semiconductor SE, you can compare the effects of market volatilities on Pembina Pipeline 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 Pembina Pipeline with a short position of Elmos Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pembina Pipeline and Elmos Semiconductor.
Diversification Opportunities for Pembina Pipeline and Elmos Semiconductor
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pembina and Elmos is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Pembina Pipeline Corp and Elmos Semiconductor SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elmos Semiconductor and Pembina Pipeline 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 Pembina Pipeline Corp 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 Pembina Pipeline i.e., Pembina Pipeline and Elmos Semiconductor go up and down completely randomly.
Pair Corralation between Pembina Pipeline and Elmos Semiconductor
Assuming the 90 days horizon Pembina Pipeline Corp is expected to generate 0.38 times more return on investment than Elmos Semiconductor. However, Pembina Pipeline Corp is 2.61 times less risky than Elmos Semiconductor. It trades about 0.09 of its potential returns per unit of risk. Elmos Semiconductor SE is currently generating about 0.0 per unit of risk. If you would invest 2,715 in Pembina Pipeline Corp on September 21, 2024 and sell it today you would earn a total of 720.00 from holding Pembina Pipeline Corp or generate 26.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pembina Pipeline Corp vs. Elmos Semiconductor SE
Performance |
| Timeline |
| Pembina Pipeline Corp |
| Elmos Semiconductor |
Pembina Pipeline and Elmos Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pembina Pipeline and Elmos Semiconductor
The main advantage of trading using opposite Pembina Pipeline and Elmos Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pembina Pipeline 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.| Pembina Pipeline vs. Superior Plus Corp | Pembina Pipeline vs. SIVERS SEMICONDUCTORS AB | Pembina Pipeline vs. NorAm Drilling AS | Pembina Pipeline vs. BANK HANDLOWY |
| Elmos Semiconductor vs. Postal Savings Bank | Elmos Semiconductor vs. Cleanaway Waste Management | Elmos Semiconductor vs. AGF Management Limited | Elmos Semiconductor vs. EAT WELL INVESTMENT |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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