Correlation Between QUALITAS SEMICONDUCTOR and BGF Retail
Can any of the company-specific risk be diversified away by investing in both QUALITAS SEMICONDUCTOR and BGF Retail 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 QUALITAS SEMICONDUCTOR and BGF Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between QUALITAS SEMICONDUCTOR LTD and BGF Retail Co, you can compare the effects of market volatilities on QUALITAS SEMICONDUCTOR and BGF Retail 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 QUALITAS SEMICONDUCTOR with a short position of BGF Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of QUALITAS SEMICONDUCTOR and BGF Retail.
Diversification Opportunities for QUALITAS SEMICONDUCTOR and BGF Retail
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between QUALITAS and BGF is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding QUALITAS SEMICONDUCTOR LTD and BGF Retail Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGF Retail and QUALITAS 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 QUALITAS SEMICONDUCTOR LTD are associated (or correlated) with BGF Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGF Retail has no effect on the direction of QUALITAS SEMICONDUCTOR i.e., QUALITAS SEMICONDUCTOR and BGF Retail go up and down completely randomly.
Pair Corralation between QUALITAS SEMICONDUCTOR and BGF Retail
Assuming the 90 days trading horizon QUALITAS SEMICONDUCTOR LTD is expected to under-perform the BGF Retail. In addition to that, QUALITAS SEMICONDUCTOR is 1.3 times more volatile than BGF Retail Co. It trades about -0.45 of its total potential returns per unit of risk. BGF Retail Co is currently generating about -0.12 per unit of volatility. If you would invest 11,630,000 in BGF Retail Co on August 25, 2024 and sell it today you would lose (830,000) from holding BGF Retail Co or give up 7.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
QUALITAS SEMICONDUCTOR LTD vs. BGF Retail Co
Performance |
| Timeline |
| QUALITAS SEMICONDUCTOR |
| BGF Retail |
QUALITAS SEMICONDUCTOR and BGF Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QUALITAS SEMICONDUCTOR and BGF Retail
The main advantage of trading using opposite QUALITAS SEMICONDUCTOR and BGF Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QUALITAS SEMICONDUCTOR position performs unexpectedly, BGF Retail 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 BGF Retail will offset losses from the drop in BGF Retail's long position.| QUALITAS SEMICONDUCTOR vs. Samsung Electronics Co | QUALITAS SEMICONDUCTOR vs. Samsung Electronics Co | QUALITAS SEMICONDUCTOR vs. LG Energy Solution | QUALITAS SEMICONDUCTOR vs. SK Hynix |
| BGF Retail vs. AptaBio Therapeutics | BGF Retail vs. Daewoo SBI SPAC | BGF Retail vs. Dream Security co | BGF Retail vs. Microfriend |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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