Correlation Between Elmos Semiconductor and Symphony Environmental

Can any of the company-specific risk be diversified away by investing in both Elmos Semiconductor and Symphony Environmental 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 Symphony Environmental 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 Symphony Environmental Technologies, you can compare the effects of market volatilities on Elmos Semiconductor and Symphony Environmental 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 Symphony Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elmos Semiconductor and Symphony Environmental.

Diversification Opportunities for Elmos Semiconductor and Symphony Environmental

-0.16

Correlation Coefficient

Elmos Semiconductor  Symphony Environmental

Good diversification

The 3 months correlation between Elmos and Symphony is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Elmos Semiconductor SE and Symphony Environmental Technol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Symphony Environmental 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 Symphony Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Symphony Environmental has no effect on the direction of Elmos Semiconductor i.e., Elmos Semiconductor and Symphony Environmental go up and down completely randomly.

Pair Corralation between Elmos Semiconductor and Symphony Environmental

Assuming the 90 days trading horizon Elmos Semiconductor SE is expected to generate 0.83 times more return on investment than Symphony Environmental. However, Elmos Semiconductor SE is 1.2 times less risky than Symphony Environmental. It trades about 0.05 of its potential returns per unit of risk. Symphony Environmental Technologies is currently generating about -0.02 per unit of risk. If you would invest  6,330  in Elmos Semiconductor SE on September 21, 2024 and sell it today you would earn a total of  435.00  from holding Elmos Semiconductor SE or generate 6.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Elmos Semiconductor SE  vs.  Symphony Environmental Technol

Elmos Semiconductor

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Elmos Semiconductor SE are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Elmos Semiconductor may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Symphony Environmental

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Symphony Environmental Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Symphony Environmental is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Elmos Semiconductor and Symphony Environmental

The main advantage of trading using opposite Elmos Semiconductor and Symphony Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elmos Semiconductor position performs unexpectedly, Symphony Environmental 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 Symphony Environmental will offset losses from the drop in Symphony Environmental's long position.

The idea behind Elmos Semiconductor SE and Symphony Environmental Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.