Correlation Between BE Semiconductor and Anglesey Mining
Can any of the company-specific risk be diversified away by investing in both BE Semiconductor and Anglesey 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 Anglesey 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 Anglesey Mining, you can compare the effects of market volatilities on BE Semiconductor and Anglesey 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 Anglesey Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of BE Semiconductor and Anglesey Mining.
Diversification Opportunities for BE Semiconductor and Anglesey Mining
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 0XVE and Anglesey is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding BE Semiconductor Industries and Anglesey Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglesey Mining 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 Anglesey Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglesey Mining has no effect on the direction of BE Semiconductor i.e., BE Semiconductor and Anglesey Mining go up and down completely randomly.
Pair Corralation between BE Semiconductor and Anglesey Mining
Assuming the 90 days trading horizon BE Semiconductor Industries is expected to generate 0.77 times more return on investment than Anglesey Mining. However, BE Semiconductor Industries is 1.3 times less risky than Anglesey Mining. It trades about -0.02 of its potential returns per unit of risk. Anglesey Mining is currently generating about -0.07 per unit of risk. If you would invest 13,370 in BE Semiconductor Industries on August 31, 2024 and sell it today you would lose (1,982) from holding BE Semiconductor Industries or give up 14.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BE Semiconductor Industries vs. Anglesey Mining
Performance |
| Timeline |
| BE Semiconductor Ind |
| Anglesey Mining |
BE Semiconductor and Anglesey Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BE Semiconductor and Anglesey Mining
The main advantage of trading using opposite BE Semiconductor and Anglesey Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BE Semiconductor position performs unexpectedly, Anglesey 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 Anglesey Mining will offset losses from the drop in Anglesey 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 |
| Anglesey Mining vs. European Metals Holdings | Anglesey Mining vs. Jacquet Metal Service | Anglesey Mining vs. Silvercorp Metals | Anglesey Mining vs. Future Metals NL |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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