Correlation Between Eclectic Bar and BE Semiconductor
Can any of the company-specific risk be diversified away by investing in both Eclectic Bar and BE Semiconductor 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 Eclectic Bar and BE Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eclectic Bar Group and BE Semiconductor Industries, you can compare the effects of market volatilities on Eclectic Bar and BE Semiconductor 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 Eclectic Bar with a short position of BE Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eclectic Bar and BE Semiconductor.
Diversification Opportunities for Eclectic Bar and BE Semiconductor
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eclectic and 0XVE is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Eclectic Bar Group and BE Semiconductor Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BE Semiconductor Ind and Eclectic Bar 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 Eclectic Bar Group are associated (or correlated) with BE Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BE Semiconductor Ind has no effect on the direction of Eclectic Bar i.e., Eclectic Bar and BE Semiconductor go up and down completely randomly.
Pair Corralation between Eclectic Bar and BE Semiconductor
Assuming the 90 days trading horizon Eclectic Bar Group is expected to generate 0.02 times more return on investment than BE Semiconductor. However, Eclectic Bar Group is 66.24 times less risky than BE Semiconductor. It trades about 0.21 of its potential returns per unit of risk. BE Semiconductor Industries is currently generating about -0.22 per unit of risk. If you would invest 4,700 in Eclectic Bar Group on November 7, 2024 and sell it today you would earn a total of 10.00 from holding Eclectic Bar Group or generate 0.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eclectic Bar Group vs. BE Semiconductor Industries
Performance |
| Timeline |
| Eclectic Bar Group |
| BE Semiconductor Ind |
Eclectic Bar and BE Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eclectic Bar and BE Semiconductor
The main advantage of trading using opposite Eclectic Bar and BE Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eclectic Bar position performs unexpectedly, BE Semiconductor 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 BE Semiconductor will offset losses from the drop in BE Semiconductor's long position.| Eclectic Bar vs. Bank of Ireland | Eclectic Bar vs. Nordea Bank Abp | Eclectic Bar vs. St Galler Kantonalbank | Eclectic Bar vs. Tatton Asset Management |
| BE Semiconductor vs. Mobile Tornado Group | BE Semiconductor vs. Infrastrutture Wireless Italiane | BE Semiconductor vs. Alliance Data Systems | BE Semiconductor vs. Ion Beam Applications |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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