Correlation Between BE Semiconductor and Eastinco Mining
Can any of the company-specific risk be diversified away by investing in both BE Semiconductor and Eastinco Mining 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 Eastinco Mining 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 Eastinco Mining Exploration, you can compare the effects of market volatilities on BE Semiconductor and Eastinco Mining 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 Eastinco Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of BE Semiconductor and Eastinco Mining.
Diversification Opportunities for BE Semiconductor and Eastinco Mining
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 0XVE and Eastinco is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding BE Semiconductor Industries and Eastinco Mining Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastinco Mining Expl 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 Eastinco Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastinco Mining Expl has no effect on the direction of BE Semiconductor i.e., BE Semiconductor and Eastinco Mining go up and down completely randomly.
Pair Corralation between BE Semiconductor and Eastinco Mining
Assuming the 90 days trading horizon BE Semiconductor Industries is expected to under-perform the Eastinco Mining. But the stock apears to be less risky and, when comparing its historical volatility, BE Semiconductor Industries is 46.55 times less risky than Eastinco Mining. The stock trades about -0.02 of its potential returns per unit of risk. The Eastinco Mining Exploration is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 0.65 in Eastinco Mining Exploration on August 31, 2024 and sell it today you would earn a total of 5,099 from holding Eastinco Mining Exploration or generate 784515.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.45% |
| Values | Daily Returns |
BE Semiconductor Industries vs. Eastinco Mining Exploration
Performance |
| Timeline |
| BE Semiconductor Ind |
| Eastinco Mining Expl |
BE Semiconductor and Eastinco Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BE Semiconductor and Eastinco Mining
The main advantage of trading using opposite BE Semiconductor and Eastinco Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BE Semiconductor position performs unexpectedly, Eastinco Mining 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 Eastinco Mining will offset losses from the drop in Eastinco Mining's long position.| BE Semiconductor vs. Monster Beverage Corp | BE Semiconductor vs. SBM Offshore NV | BE Semiconductor vs. MoneysupermarketCom Group PLC | BE Semiconductor vs. Creo Medical Group |
| Eastinco Mining vs. Gaztransport et Technigaz | Eastinco Mining vs. Zoom Video Communications | Eastinco Mining vs. Molson Coors Beverage | Eastinco Mining vs. MTI Wireless Edge |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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