Correlation Between BE Semiconductor and Santacruz Silver
Can any of the company-specific risk be diversified away by investing in both BE Semiconductor and Santacruz Silver 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 Santacruz Silver 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 Santacruz Silver Mining, you can compare the effects of market volatilities on BE Semiconductor and Santacruz Silver 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 Santacruz Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of BE Semiconductor and Santacruz Silver.
Diversification Opportunities for BE Semiconductor and Santacruz Silver
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between BSI and Santacruz is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding BE Semiconductor Industries and Santacruz Silver Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Santacruz Silver Mining 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 Santacruz Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Santacruz Silver Mining has no effect on the direction of BE Semiconductor i.e., BE Semiconductor and Santacruz Silver go up and down completely randomly.
Pair Corralation between BE Semiconductor and Santacruz Silver
Assuming the 90 days trading horizon BE Semiconductor Industries is expected to under-perform the Santacruz Silver. But the stock apears to be less risky and, when comparing its historical volatility, BE Semiconductor Industries is 1.09 times less risky than Santacruz Silver. The stock trades about -0.15 of its potential returns per unit of risk. The Santacruz Silver Mining is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 19.00 in Santacruz Silver Mining on November 7, 2024 and sell it today you would earn a total of 7.00 from holding Santacruz Silver Mining or generate 36.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
BE Semiconductor Industries vs. Santacruz Silver Mining
Performance |
| Timeline |
| BE Semiconductor Ind |
| Santacruz Silver Mining |
BE Semiconductor and Santacruz Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BE Semiconductor and Santacruz Silver
The main advantage of trading using opposite BE Semiconductor and Santacruz Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BE Semiconductor position performs unexpectedly, Santacruz Silver 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 Santacruz Silver will offset losses from the drop in Santacruz Silver's long position.| BE Semiconductor vs. BioNTech SE | BE Semiconductor vs. VELA TECHNOLPLC LS 0001 | BE Semiconductor vs. Sunny Optical Technology | BE Semiconductor vs. Genscript Biotech |
| Santacruz Silver vs. Pan American Silver | Santacruz Silver vs. First Majestic Silver | Santacruz Silver vs. MAG Silver Corp | Santacruz Silver vs. Silvercorp Metals |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |