Correlation Between Elmos Semiconductor and Lords Grp

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

Diversification Opportunities for Elmos Semiconductor and Lords Grp

0.95

Correlation Coefficient

Elmos Semiconductor  Lords Grp

Almost no diversification

The 3 months correlation between Elmos and Lords is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Elmos Semiconductor SE and Lords Grp Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lords Grp Trading 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 Lords Grp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lords Grp Trading has no effect on the direction of Elmos Semiconductor i.e., Elmos Semiconductor and Lords Grp go up and down completely randomly.

Pair Corralation between Elmos Semiconductor and Lords Grp

Assuming the 90 days trading horizon Elmos Semiconductor SE is expected to generate 1.09 times more return on investment than Lords Grp. However, Elmos Semiconductor is 1.09 times more volatile than Lords Grp Trading. It trades about 0.05 of its potential returns per unit of risk. Lords Grp Trading is currently generating about 0.0 per unit of risk. If you would invest  6,030  in Elmos Semiconductor SE on April 25, 2025 and sell it today you would earn a total of  3,115  from holding Elmos Semiconductor SE or generate 51.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Elmos Semiconductor SE  vs.  Lords Grp Trading

Elmos Semiconductor

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Elmos Semiconductor SE are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Elmos Semiconductor unveiled solid returns over the last few months and may actually be approaching a breakup point.

Lords Grp Trading

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Lords Grp Trading are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Lords Grp unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Elmos Semiconductor and Lords Grp

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

The idea behind Elmos Semiconductor SE and Lords Grp Trading 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.

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..