Correlation Between BE Semiconductor and CVS Health
Can any of the company-specific risk be diversified away by investing in both BE Semiconductor and CVS Health 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 BE Semiconductor and CVS Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BE Semiconductor Industries and CVS Health Corp, you can compare the effects of market volatilities on BE Semiconductor and CVS Health 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 BE Semiconductor with a short position of CVS Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of BE Semiconductor and CVS Health.
Diversification Opportunities for BE Semiconductor and CVS Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 0XVE and CVS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BE Semiconductor Industries and CVS Health Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVS Health Corp and BE 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 BE Semiconductor Industries are associated (or correlated) with CVS Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVS Health Corp has no effect on the direction of BE Semiconductor i.e., BE Semiconductor and CVS Health go up and down completely randomly.
Pair Corralation between BE Semiconductor and CVS Health
Assuming the 90 days trading horizon BE Semiconductor Industries is expected to generate 1.35 times more return on investment than CVS Health. However, BE Semiconductor is 1.35 times more volatile than CVS Health Corp. It trades about 0.06 of its potential returns per unit of risk. CVS Health Corp is currently generating about -0.02 per unit of risk. If you would invest 6,508 in BE Semiconductor Industries on August 27, 2024 and sell it today you would earn a total of 4,807 from holding BE Semiconductor Industries or generate 73.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.56% |
| Values | Daily Returns |
BE Semiconductor Industries vs. CVS Health Corp
Performance |
| Timeline |
| BE Semiconductor Ind |
| CVS Health Corp |
BE Semiconductor and CVS Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BE Semiconductor and CVS Health
The main advantage of trading using opposite BE Semiconductor and CVS Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BE Semiconductor position performs unexpectedly, CVS Health 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 CVS Health will offset losses from the drop in CVS Health's long position.| BE Semiconductor vs. Samsung Electronics Co | BE Semiconductor vs. Samsung Electronics Co | BE Semiconductor vs. Hyundai Motor | BE Semiconductor vs. Toyota Motor Corp |
| CVS Health vs. Samsung Electronics Co | CVS Health vs. Samsung Electronics Co | CVS Health vs. Hyundai Motor | CVS Health vs. Toyota Motor Corp |
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.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |