Correlation Between Elmos Semiconductor and JB Hunt
Can any of the company-specific risk be diversified away by investing in both Elmos Semiconductor and JB Hunt 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 JB Hunt 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 JB Hunt Transport, you can compare the effects of market volatilities on Elmos Semiconductor and JB Hunt 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 JB Hunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elmos Semiconductor and JB Hunt.
Diversification Opportunities for Elmos Semiconductor and JB Hunt
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Elmos and 0J71 is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Elmos Semiconductor SE and JB Hunt Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JB Hunt Transport 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 JB Hunt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JB Hunt Transport has no effect on the direction of Elmos Semiconductor i.e., Elmos Semiconductor and JB Hunt go up and down completely randomly.
Pair Corralation between Elmos Semiconductor and JB Hunt
Assuming the 90 days trading horizon Elmos Semiconductor SE is expected to generate 1.91 times more return on investment than JB Hunt. However, Elmos Semiconductor is 1.91 times more volatile than JB Hunt Transport. It trades about 0.04 of its potential returns per unit of risk. JB Hunt Transport is currently generating about 0.07 per unit of risk. If you would invest 6,460 in Elmos Semiconductor SE on September 15, 2024 and sell it today you would earn a total of 340.00 from holding Elmos Semiconductor SE or generate 5.26% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Elmos Semiconductor SE vs. JB Hunt Transport
Performance |
Timeline |
Elmos Semiconductor |
JB Hunt Transport |
Elmos Semiconductor and JB Hunt Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Elmos Semiconductor and JB Hunt
The main advantage of trading using opposite Elmos Semiconductor and JB Hunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elmos Semiconductor position performs unexpectedly, JB Hunt 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 JB Hunt will offset losses from the drop in JB Hunt's long position.Elmos Semiconductor vs. Samsung Electronics Co | Elmos Semiconductor vs. Samsung Electronics Co | Elmos Semiconductor vs. Hyundai Motor | Elmos Semiconductor vs. Reliance Industries Ltd |
JB Hunt vs. Samsung Electronics Co | JB Hunt vs. Samsung Electronics Co | JB Hunt vs. Hyundai Motor | JB Hunt vs. Reliance Industries Ltd |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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