Correlation Between BE Semiconductor and CANON MARKETING
Can any of the company-specific risk be diversified away by investing in both BE Semiconductor and CANON MARKETING 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 CANON MARKETING 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 CANON MARKETING JP, you can compare the effects of market volatilities on BE Semiconductor and CANON MARKETING 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 CANON MARKETING. Check out your portfolio center. Please also check ongoing floating volatility patterns of BE Semiconductor and CANON MARKETING.
Diversification Opportunities for BE Semiconductor and CANON MARKETING
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BSI and CANON is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding BE Semiconductor Industries and CANON MARKETING JP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CANON MARKETING JP 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 CANON MARKETING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CANON MARKETING JP has no effect on the direction of BE Semiconductor i.e., BE Semiconductor and CANON MARKETING go up and down completely randomly.
Pair Corralation between BE Semiconductor and CANON MARKETING
Assuming the 90 days trading horizon BE Semiconductor Industries is expected to generate 2.31 times more return on investment than CANON MARKETING. However, BE Semiconductor is 2.31 times more volatile than CANON MARKETING JP. It trades about 0.27 of its potential returns per unit of risk. CANON MARKETING JP is currently generating about -0.15 per unit of risk. If you would invest 12,660 in BE Semiconductor Industries on October 14, 2024 and sell it today you would earn a total of 1,660 from holding BE Semiconductor Industries or generate 13.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BE Semiconductor Industries vs. CANON MARKETING JP
Performance |
| Timeline |
| BE Semiconductor Ind |
| CANON MARKETING JP |
BE Semiconductor and CANON MARKETING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BE Semiconductor and CANON MARKETING
The main advantage of trading using opposite BE Semiconductor and CANON MARKETING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BE Semiconductor position performs unexpectedly, CANON MARKETING 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 CANON MARKETING will offset losses from the drop in CANON MARKETING's long position.| BE Semiconductor vs. Sekisui Chemical Co | BE Semiconductor vs. Silicon Motion Technology | BE Semiconductor vs. TRI CHEMICAL LABORATINC | BE Semiconductor vs. Altair Engineering |
| CANON MARKETING vs. UNIQA INSURANCE GR | CANON MARKETING vs. BE Semiconductor Industries | CANON MARKETING vs. Semiconductor Manufacturing International | CANON MARKETING vs. QBE Insurance Group |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |