Correlation Between SQUIRREL MEDIA and BE Semiconductor
Can any of the company-specific risk be diversified away by investing in both SQUIRREL MEDIA and BE 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 SQUIRREL MEDIA and BE Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SQUIRREL MEDIA SA and BE Semiconductor Industries, you can compare the effects of market volatilities on SQUIRREL MEDIA and BE 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 SQUIRREL MEDIA with a short position of BE Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of SQUIRREL MEDIA and BE Semiconductor.
Diversification Opportunities for SQUIRREL MEDIA and BE Semiconductor
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SQUIRREL and BSI is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding SQUIRREL MEDIA SA and BE Semiconductor Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BE Semiconductor Ind and SQUIRREL MEDIA 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 SQUIRREL MEDIA SA are associated (or correlated) with BE Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BE Semiconductor Ind has no effect on the direction of SQUIRREL MEDIA i.e., SQUIRREL MEDIA and BE Semiconductor go up and down completely randomly.
Pair Corralation between SQUIRREL MEDIA and BE Semiconductor
Assuming the 90 days horizon SQUIRREL MEDIA SA is expected to under-perform the BE Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, SQUIRREL MEDIA SA is 1.26 times less risky than BE Semiconductor. The stock trades about -0.04 of its potential returns per unit of risk. The BE Semiconductor Industries is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 7,331 in BE Semiconductor Industries on October 13, 2024 and sell it today you would earn a total of 6,989 from holding BE Semiconductor Industries or generate 95.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.78% |
| Values | Daily Returns |
SQUIRREL MEDIA SA vs. BE Semiconductor Industries
Performance |
| Timeline |
| SQUIRREL MEDIA SA |
| BE Semiconductor Ind |
SQUIRREL MEDIA and BE Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SQUIRREL MEDIA and BE Semiconductor
The main advantage of trading using opposite SQUIRREL MEDIA and BE Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SQUIRREL MEDIA position performs unexpectedly, BE 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 BE Semiconductor will offset losses from the drop in BE Semiconductor's long position.| SQUIRREL MEDIA vs. Ares Management Corp | SQUIRREL MEDIA vs. Charter Communications | SQUIRREL MEDIA vs. Ribbon Communications | SQUIRREL MEDIA vs. Cairo Communication SpA |
| BE Semiconductor vs. TOREX SEMICONDUCTOR LTD | BE Semiconductor vs. Tower Semiconductor | BE Semiconductor vs. SQUIRREL MEDIA SA | BE Semiconductor vs. NXP Semiconductors NV |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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