Correlation Between BE Semiconductor and Calbee
Can any of the company-specific risk be diversified away by investing in both BE Semiconductor and Calbee 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 Calbee 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 Calbee Inc, you can compare the effects of market volatilities on BE Semiconductor and Calbee 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 Calbee. Check out your portfolio center. Please also check ongoing floating volatility patterns of BE Semiconductor and Calbee.
Diversification Opportunities for BE Semiconductor and Calbee
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BSI and Calbee is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding BE Semiconductor Industries and Calbee Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calbee 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 Calbee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calbee Inc has no effect on the direction of BE Semiconductor i.e., BE Semiconductor and Calbee go up and down completely randomly.
Pair Corralation between BE Semiconductor and Calbee
Assuming the 90 days trading horizon BE Semiconductor Industries is expected to generate 1.8 times more return on investment than Calbee. However, BE Semiconductor is 1.8 times more volatile than Calbee Inc. It trades about 0.17 of its potential returns per unit of risk. Calbee Inc is currently generating about -0.24 per unit of risk. If you would invest 13,440 in BE Semiconductor Industries on October 24, 2024 and sell it today you would earn a total of 1,125 from holding BE Semiconductor Industries or generate 8.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BE Semiconductor Industries vs. Calbee Inc
Performance |
| Timeline |
| BE Semiconductor Ind |
| Calbee Inc |
BE Semiconductor and Calbee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BE Semiconductor and Calbee
The main advantage of trading using opposite BE Semiconductor and Calbee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BE Semiconductor position performs unexpectedly, Calbee 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 Calbee will offset losses from the drop in Calbee's long position.| BE Semiconductor vs. T Mobile | BE Semiconductor vs. Mobilezone Holding AG | BE Semiconductor vs. MOBILE FACTORY INC | BE Semiconductor vs. Kingdee International Software |
| Calbee vs. Casio Computer CoLtd | Calbee vs. SCOTT TECHNOLOGY | Calbee vs. SMA Solar Technology | Calbee vs. BE Semiconductor Industries |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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