Correlation Between BE Semiconductor and MOGU
Can any of the company-specific risk be diversified away by investing in both BE Semiconductor and MOGU 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 MOGU 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 MOGU Inc, you can compare the effects of market volatilities on BE Semiconductor and MOGU 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 MOGU. Check out your portfolio center. Please also check ongoing floating volatility patterns of BE Semiconductor and MOGU.
Diversification Opportunities for BE Semiconductor and MOGU
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BESIY and MOGU is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding BE Semiconductor Industries and MOGU Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOGU Inc 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 MOGU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOGU Inc has no effect on the direction of BE Semiconductor i.e., BE Semiconductor and MOGU go up and down completely randomly.
Pair Corralation between BE Semiconductor and MOGU
Assuming the 90 days horizon BE Semiconductor Industries is expected to under-perform the MOGU. In addition to that, BE Semiconductor is 1.76 times more volatile than MOGU Inc. It trades about -0.04 of its total potential returns per unit of risk. MOGU Inc is currently generating about 0.18 per unit of volatility. If you would invest 230.00 in MOGU Inc on November 4, 2024 and sell it today you would earn a total of 20.00 from holding MOGU Inc or generate 8.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BE Semiconductor Industries vs. MOGU Inc
Performance |
| Timeline |
| BE Semiconductor Ind |
| MOGU Inc |
BE Semiconductor and MOGU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BE Semiconductor and MOGU
The main advantage of trading using opposite BE Semiconductor and MOGU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BE Semiconductor position performs unexpectedly, MOGU 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 MOGU will offset losses from the drop in MOGU's long position.| BE Semiconductor vs. Lasertec | BE Semiconductor vs. Tokyo Electron Ltd | BE Semiconductor vs. Asm Pacific Technology | BE Semiconductor vs. Sumco Corp ADR |
| MOGU vs. iPower Inc | MOGU vs. LightInTheBox Holding Co | MOGU vs. Qurate Retail Series | MOGU vs. Kidpik Corp |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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