Correlation Between Elmos Semiconductor and THAI BEVERAGE

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

Diversification Opportunities for Elmos Semiconductor and THAI BEVERAGE

ElmosTHAIDiversified AwayElmosTHAIDiversified Away100%
0.11
  Correlation Coefficient

Average diversification

The 3 months correlation between Elmos and THAI is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Elmos Semiconductor SE and THAI BEVERAGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THAI BEVERAGE 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 THAI BEVERAGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THAI BEVERAGE has no effect on the direction of Elmos Semiconductor i.e., Elmos Semiconductor and THAI BEVERAGE go up and down completely randomly.

Pair Corralation between Elmos Semiconductor and THAI BEVERAGE

Assuming the 90 days trading horizon Elmos Semiconductor SE is expected to generate 1.55 times more return on investment than THAI BEVERAGE. However, Elmos Semiconductor is 1.55 times more volatile than THAI BEVERAGE. It trades about 0.16 of its potential returns per unit of risk. THAI BEVERAGE is currently generating about 0.01 per unit of risk. If you would invest  5,490  in Elmos Semiconductor SE on October 31, 2024 and sell it today you would earn a total of  1,820  from holding Elmos Semiconductor SE or generate 33.15% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Elmos Semiconductor SE  vs.  THAI BEVERAGE

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -10-50510152025
JavaScript chart by amCharts 3.21.15ELG T6W
       Timeline  
Elmos Semiconductor 

Risk-Adjusted Performance

12 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Elmos Semiconductor SE are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile technical and fundamental indicators, Elmos Semiconductor unveiled solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan556065707580
THAI BEVERAGE 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days THAI BEVERAGE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, THAI BEVERAGE is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan0.340.350.360.370.380.390.4

Elmos Semiconductor and THAI BEVERAGE Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-10.81-8.09-5.38-2.670.02.785.618.4411.27 0.020.040.060.08
JavaScript chart by amCharts 3.21.15ELG T6W
       Returns  

Pair Trading with Elmos Semiconductor and THAI BEVERAGE

The main advantage of trading using opposite Elmos Semiconductor and THAI BEVERAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elmos Semiconductor position performs unexpectedly, THAI BEVERAGE 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 THAI BEVERAGE will offset losses from the drop in THAI BEVERAGE's long position.
The idea behind Elmos Semiconductor SE and THAI BEVERAGE 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.

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