Correlation Between Boussard and BE Semiconductor
Can any of the company-specific risk be diversified away by investing in both Boussard 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 Boussard and BE Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boussard and Gavaudan and BE Semiconductor Industries, you can compare the effects of market volatilities on Boussard 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 Boussard with a short position of BE Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boussard and BE Semiconductor.
Diversification Opportunities for Boussard and BE Semiconductor
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Boussard and BESI is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Boussard and Gavaudan 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 Boussard 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 Boussard and Gavaudan 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 Boussard i.e., Boussard and BE Semiconductor go up and down completely randomly.
Pair Corralation between Boussard and BE Semiconductor
Assuming the 90 days trading horizon Boussard is expected to generate 2.46 times less return on investment than BE Semiconductor. But when comparing it to its historical volatility, Boussard and Gavaudan is 2.3 times less risky than BE Semiconductor. It trades about 0.06 of its potential returns per unit of risk. BE Semiconductor Industries is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 5,767 in BE Semiconductor Industries on August 28, 2024 and sell it today you would earn a total of 5,478 from holding BE Semiconductor Industries or generate 94.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 74.01% |
| Values | Daily Returns |
Boussard and Gavaudan vs. BE Semiconductor Industries
Performance |
| Timeline |
| Boussard and Gavaudan |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| BE Semiconductor Ind |
Boussard and BE Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boussard and BE Semiconductor
The main advantage of trading using opposite Boussard and BE Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boussard 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.| Boussard vs. NN Group NV | Boussard vs. Koninklijke Ahold Delhaize | Boussard vs. BE Semiconductor Industries | Boussard vs. Aegon NV |
| BE Semiconductor vs. ASM International NV | BE Semiconductor vs. ASML Holding NV | BE Semiconductor vs. ASR Nederland NV | BE Semiconductor vs. Koninklijke Ahold Delhaize |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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