Correlation Between BE Semiconductor and Ichor Holdings
Can any of the company-specific risk be diversified away by investing in both BE Semiconductor and Ichor Holdings 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 Ichor Holdings 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 Ichor Holdings, you can compare the effects of market volatilities on BE Semiconductor and Ichor Holdings 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 Ichor Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of BE Semiconductor and Ichor Holdings.
Diversification Opportunities for BE Semiconductor and Ichor Holdings
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BESIY and Ichor is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding BE Semiconductor Industries and Ichor Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ichor Holdings 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 Ichor Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ichor Holdings has no effect on the direction of BE Semiconductor i.e., BE Semiconductor and Ichor Holdings go up and down completely randomly.
Pair Corralation between BE Semiconductor and Ichor Holdings
Assuming the 90 days horizon BE Semiconductor Industries is expected to under-perform the Ichor Holdings. But the pink sheet apears to be less risky and, when comparing its historical volatility, BE Semiconductor Industries is 1.65 times less risky than Ichor Holdings. The pink sheet trades about -0.01 of its potential returns per unit of risk. The Ichor Holdings is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 2,699 in Ichor Holdings on August 25, 2024 and sell it today you would earn a total of 636.00 from holding Ichor Holdings or generate 23.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BE Semiconductor Industries vs. Ichor Holdings
Performance |
| Timeline |
| BE Semiconductor Ind |
| Ichor Holdings |
BE Semiconductor and Ichor Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BE Semiconductor and Ichor Holdings
The main advantage of trading using opposite BE Semiconductor and Ichor Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BE Semiconductor position performs unexpectedly, Ichor Holdings 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 Ichor Holdings will offset losses from the drop in Ichor Holdings' long position.| BE Semiconductor vs. Lasertec | BE Semiconductor vs. Tokyo Electron Ltd | BE Semiconductor vs. Asm Pacific Technology | BE Semiconductor vs. Sumco Corp ADR |
| Ichor Holdings vs. Cohu Inc | Ichor Holdings vs. Entegris | Ichor Holdings vs. Veeco Instruments | Ichor Holdings vs. Amtech Systems |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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