Correlation Between BE Semiconductor and Kellogg
Can any of the company-specific risk be diversified away by investing in both BE Semiconductor and Kellogg 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 Kellogg 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 Kellogg Company, you can compare the effects of market volatilities on BE Semiconductor and Kellogg 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 Kellogg. Check out your portfolio center. Please also check ongoing floating volatility patterns of BE Semiconductor and Kellogg.
Diversification Opportunities for BE Semiconductor and Kellogg
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BSI and Kellogg is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding BE Semiconductor Industries and Kellogg Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kellogg Company 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 Kellogg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kellogg Company has no effect on the direction of BE Semiconductor i.e., BE Semiconductor and Kellogg go up and down completely randomly.
Pair Corralation between BE Semiconductor and Kellogg
Assuming the 90 days trading horizon BE Semiconductor Industries is expected to under-perform the Kellogg. In addition to that, BE Semiconductor is 6.92 times more volatile than Kellogg Company. It trades about -0.06 of its total potential returns per unit of risk. Kellogg Company is currently generating about 0.06 per unit of volatility. If you would invest 7,802 in Kellogg Company on November 3, 2024 and sell it today you would earn a total of 54.00 from holding Kellogg Company or generate 0.69% 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. Kellogg Company
Performance |
| Timeline |
| BE Semiconductor Ind |
| Kellogg Company |
BE Semiconductor and Kellogg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BE Semiconductor and Kellogg
The main advantage of trading using opposite BE Semiconductor and Kellogg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BE Semiconductor position performs unexpectedly, Kellogg 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 Kellogg will offset losses from the drop in Kellogg's long position.| BE Semiconductor vs. SIVERS SEMICONDUCTORS AB | BE Semiconductor vs. NorAm Drilling AS | BE Semiconductor vs. Volkswagen AG | BE Semiconductor vs. Darden Restaurants |
| Kellogg vs. Spirent Communications plc | Kellogg vs. Iridium Communications | Kellogg vs. INTERNET INJPADR 1 | Kellogg vs. COMPUTERSHARE |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |