Correlation Between Universal Display and ELMOS SEMICONDUCTOR
Can any of the company-specific risk be diversified away by investing in both Universal Display 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 Universal Display and ELMOS SEMICONDUCTOR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Universal Display and ELMOS SEMICONDUCTOR, you can compare the effects of market volatilities on Universal Display 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 Universal Display with a short position of ELMOS SEMICONDUCTOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Universal Display and ELMOS SEMICONDUCTOR.
Diversification Opportunities for Universal Display and ELMOS SEMICONDUCTOR
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Universal and ELMOS is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Universal Display and ELMOS SEMICONDUCTOR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ELMOS SEMICONDUCTOR and Universal Display 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 Universal Display 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 Universal Display i.e., Universal Display and ELMOS SEMICONDUCTOR go up and down completely randomly.
Pair Corralation between Universal Display and ELMOS SEMICONDUCTOR
Assuming the 90 days horizon Universal Display is expected to generate 0.92 times more return on investment than ELMOS SEMICONDUCTOR. However, Universal Display is 1.08 times less risky than ELMOS SEMICONDUCTOR. It trades about 0.03 of its potential returns per unit of risk. ELMOS SEMICONDUCTOR is currently generating about 0.0 per unit of risk. If you would invest 13,489 in Universal Display on August 31, 2024 and sell it today you would earn a total of 1,741 from holding Universal Display or generate 12.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
Universal Display vs. ELMOS SEMICONDUCTOR
Performance |
| Timeline |
| Universal Display |
| ELMOS SEMICONDUCTOR |
Universal Display and ELMOS SEMICONDUCTOR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Universal Display and ELMOS SEMICONDUCTOR
The main advantage of trading using opposite Universal Display and ELMOS SEMICONDUCTOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universal Display 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.| Universal Display vs. ASML Holding NV | Universal Display vs. Superior Plus Corp | Universal Display vs. NMI Holdings | Universal Display vs. Origin Agritech |
| ELMOS SEMICONDUCTOR vs. Treasury Wine Estates | ELMOS SEMICONDUCTOR vs. Spirent Communications plc | ELMOS SEMICONDUCTOR vs. Calibre Mining Corp | ELMOS SEMICONDUCTOR vs. SK TELECOM TDADR |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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