Correlation Between Pembina Pipeline and Elmos Semiconductor
Can any of the company-specific risk be diversified away by investing in both Pembina Pipeline 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 Pembina Pipeline and Elmos Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pembina Pipeline Corp and Elmos Semiconductor SE, you can compare the effects of market volatilities on Pembina Pipeline 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 Pembina Pipeline with a short position of Elmos Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pembina Pipeline and Elmos Semiconductor.
Diversification Opportunities for Pembina Pipeline and Elmos Semiconductor
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pembina and Elmos is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Pembina Pipeline Corp and Elmos Semiconductor SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elmos Semiconductor and Pembina Pipeline 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 Pembina Pipeline Corp 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 Pembina Pipeline i.e., Pembina Pipeline and Elmos Semiconductor go up and down completely randomly.
Pair Corralation between Pembina Pipeline and Elmos Semiconductor
Assuming the 90 days horizon Pembina Pipeline Corp is expected to under-perform the Elmos Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Pembina Pipeline Corp is 2.44 times less risky than Elmos Semiconductor. The stock trades about -0.63 of its potential returns per unit of risk. The Elmos Semiconductor SE is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 6,330 in Elmos Semiconductor SE on September 25, 2024 and sell it today you would earn a total of 330.00 from holding Elmos Semiconductor SE or generate 5.21% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Pembina Pipeline Corp vs. Elmos Semiconductor SE
Performance |
Timeline |
Pembina Pipeline Corp |
Elmos Semiconductor |
Pembina Pipeline and Elmos Semiconductor Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pembina Pipeline and Elmos Semiconductor
The main advantage of trading using opposite Pembina Pipeline and Elmos Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pembina Pipeline 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.Pembina Pipeline vs. Enbridge | Pembina Pipeline vs. The Williams Companies | Pembina Pipeline vs. ONEOK Inc |
Elmos Semiconductor vs. STMicroelectronics NV | Elmos Semiconductor vs. RETAIL FOOD GROUP | Elmos Semiconductor vs. UET United Electronic | Elmos Semiconductor vs. LG Electronics |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |