Correlation Between BE Semiconductor and HOYA
Can any of the company-specific risk be diversified away by investing in both BE Semiconductor and HOYA 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 HOYA 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 HOYA Corporation, you can compare the effects of market volatilities on BE Semiconductor and HOYA 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 HOYA. Check out your portfolio center. Please also check ongoing floating volatility patterns of BE Semiconductor and HOYA.
Diversification Opportunities for BE Semiconductor and HOYA
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BSI and HOYA is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding BE Semiconductor Industries and HOYA Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HOYA 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 HOYA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HOYA has no effect on the direction of BE Semiconductor i.e., BE Semiconductor and HOYA go up and down completely randomly.
Pair Corralation between BE Semiconductor and HOYA
Assuming the 90 days trading horizon BE Semiconductor Industries is expected to under-perform the HOYA. But the stock apears to be less risky and, when comparing its historical volatility, BE Semiconductor Industries is 2.5 times less risky than HOYA. The stock trades about -0.03 of its potential returns per unit of risk. The HOYA Corporation is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,273 in HOYA Corporation on December 11, 2024 and sell it today you would earn a total of 7,502 from holding HOYA Corporation or generate 229.21% 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. HOYA Corp.
Performance |
| Timeline |
| BE Semiconductor Ind |
| HOYA |
BE Semiconductor and HOYA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BE Semiconductor and HOYA
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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