Correlation Between BE Semiconductor and Citigroup
Can any of the company-specific risk be diversified away by investing in both BE Semiconductor and Citigroup 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 Citigroup 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 Citigroup, you can compare the effects of market volatilities on BE Semiconductor and Citigroup 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 Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of BE Semiconductor and Citigroup.
Diversification Opportunities for BE Semiconductor and Citigroup
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 0XVE and Citigroup is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding BE Semiconductor Industries and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup 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 Citigroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citigroup has no effect on the direction of BE Semiconductor i.e., BE Semiconductor and Citigroup go up and down completely randomly.
Pair Corralation between BE Semiconductor and Citigroup
Assuming the 90 days trading horizon BE Semiconductor Industries is expected to generate 3.57 times more return on investment than Citigroup. However, BE Semiconductor is 3.57 times more volatile than Citigroup. It trades about 0.19 of its potential returns per unit of risk. Citigroup is currently generating about 0.23 per unit of risk. If you would invest 11,140 in BE Semiconductor Industries on September 14, 2024 and sell it today you would earn a total of 1,323 from holding BE Semiconductor Industries or generate 11.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BE Semiconductor Industries vs. Citigroup
Performance |
| Timeline |
| BE Semiconductor Ind |
| Citigroup |
BE Semiconductor and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BE Semiconductor and Citigroup
The main advantage of trading using opposite BE Semiconductor and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BE Semiconductor position performs unexpectedly, Citigroup 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 Citigroup will offset losses from the drop in Citigroup's long position.| BE Semiconductor vs. Sparebank 1 SR | BE Semiconductor vs. Lloyds Banking Group | BE Semiconductor vs. Komercni Banka | BE Semiconductor vs. GlobalData PLC |
| Citigroup vs. BE Semiconductor Industries | Citigroup vs. Accsys Technologies PLC | Citigroup vs. Eastinco Mining Exploration | Citigroup vs. Raytheon Technologies 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |