Correlation Between ULTRA CLEAN and Elis SA
Can any of the company-specific risk be diversified away by investing in both ULTRA CLEAN and Elis SA 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 ULTRA CLEAN and Elis SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ULTRA CLEAN HLDGS and Elis SA, you can compare the effects of market volatilities on ULTRA CLEAN and Elis SA 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 ULTRA CLEAN with a short position of Elis SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ULTRA CLEAN and Elis SA.
Diversification Opportunities for ULTRA CLEAN and Elis SA
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ULTRA and Elis is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding ULTRA CLEAN HLDGS and Elis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elis SA and ULTRA CLEAN 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 ULTRA CLEAN HLDGS are associated (or correlated) with Elis SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elis SA has no effect on the direction of ULTRA CLEAN i.e., ULTRA CLEAN and Elis SA go up and down completely randomly.
Pair Corralation between ULTRA CLEAN and Elis SA
Assuming the 90 days trading horizon ULTRA CLEAN HLDGS is expected to under-perform the Elis SA. In addition to that, ULTRA CLEAN is 1.82 times more volatile than Elis SA. It trades about -0.08 of its total potential returns per unit of risk. Elis SA is currently generating about 0.26 per unit of volatility. If you would invest 1,838 in Elis SA on November 5, 2024 and sell it today you would earn a total of 161.00 from holding Elis SA or generate 8.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ULTRA CLEAN HLDGS vs. Elis SA
Performance |
| Timeline |
| ULTRA CLEAN HLDGS |
| Elis SA |
ULTRA CLEAN and Elis SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ULTRA CLEAN and Elis SA
The main advantage of trading using opposite ULTRA CLEAN and Elis SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ULTRA CLEAN position performs unexpectedly, Elis SA 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 Elis SA will offset losses from the drop in Elis SA's long position.| ULTRA CLEAN vs. CORNISH METALS INC | ULTRA CLEAN vs. American Homes 4 | ULTRA CLEAN vs. FIREWEED METALS P | ULTRA CLEAN vs. Ringmetall SE |
| Elis SA vs. Canon Marketing Japan | Elis SA vs. TRADELINK ELECTRON | Elis SA vs. Fast Retailing Co | Elis SA vs. Indutrade AB |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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