Correlation Between BE Semiconductor and JLEN Environmental
Can any of the company-specific risk be diversified away by investing in both BE Semiconductor and JLEN Environmental 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 JLEN Environmental 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 JLEN Environmental Assets, you can compare the effects of market volatilities on BE Semiconductor and JLEN Environmental 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 JLEN Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of BE Semiconductor and JLEN Environmental.
Diversification Opportunities for BE Semiconductor and JLEN Environmental
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 0XVE and JLEN is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding BE Semiconductor Industries and JLEN Environmental Assets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JLEN Environmental Assets 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 JLEN Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JLEN Environmental Assets has no effect on the direction of BE Semiconductor i.e., BE Semiconductor and JLEN Environmental go up and down completely randomly.
Pair Corralation between BE Semiconductor and JLEN Environmental
Assuming the 90 days trading horizon BE Semiconductor Industries is expected to generate 1.72 times more return on investment than JLEN Environmental. However, BE Semiconductor is 1.72 times more volatile than JLEN Environmental Assets. It trades about -0.08 of its potential returns per unit of risk. JLEN Environmental Assets is currently generating about -0.23 per unit of risk. If you would invest 13,310 in BE Semiconductor Industries on October 30, 2024 and sell it today you would lose (747.00) from holding BE Semiconductor Industries or give up 5.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BE Semiconductor Industries vs. JLEN Environmental Assets
Performance |
| Timeline |
| BE Semiconductor Ind |
| JLEN Environmental Assets |
BE Semiconductor and JLEN Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BE Semiconductor and JLEN Environmental
The main advantage of trading using opposite BE Semiconductor and JLEN Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BE Semiconductor position performs unexpectedly, JLEN Environmental 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 JLEN Environmental will offset losses from the drop in JLEN Environmental's long position.| BE Semiconductor vs. Fulcrum Metals PLC | BE Semiconductor vs. Wheaton Precious Metals | BE Semiconductor vs. URU Metals | BE Semiconductor vs. Eastinco Mining Exploration |
| JLEN Environmental vs. Geely Automobile Holdings | JLEN Environmental vs. Flow Traders NV | JLEN Environmental vs. Games Workshop Group | JLEN Environmental vs. Charter Communications Cl |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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