Correlation Between BE Semiconductor and SPECTRAL MEDICAL
Can any of the company-specific risk be diversified away by investing in both BE Semiconductor and SPECTRAL MEDICAL 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 SPECTRAL MEDICAL 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 SPECTRAL MEDICAL, you can compare the effects of market volatilities on BE Semiconductor and SPECTRAL MEDICAL 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 SPECTRAL MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of BE Semiconductor and SPECTRAL MEDICAL.
Diversification Opportunities for BE Semiconductor and SPECTRAL MEDICAL
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BSI and SPECTRAL is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding BE Semiconductor Industries and SPECTRAL MEDICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPECTRAL MEDICAL 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 SPECTRAL MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPECTRAL MEDICAL has no effect on the direction of BE Semiconductor i.e., BE Semiconductor and SPECTRAL MEDICAL go up and down completely randomly.
Pair Corralation between BE Semiconductor and SPECTRAL MEDICAL
Assuming the 90 days trading horizon BE Semiconductor Industries is expected to generate 0.71 times more return on investment than SPECTRAL MEDICAL. However, BE Semiconductor Industries is 1.4 times less risky than SPECTRAL MEDICAL. It trades about 0.3 of its potential returns per unit of risk. SPECTRAL MEDICAL is currently generating about 0.14 per unit of risk. If you would invest 12,515 in BE Semiconductor Industries on October 11, 2024 and sell it today you would earn a total of 1,875 from holding BE Semiconductor Industries or generate 14.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BE Semiconductor Industries vs. SPECTRAL MEDICAL
Performance |
| Timeline |
| BE Semiconductor Ind |
| SPECTRAL MEDICAL |
BE Semiconductor and SPECTRAL MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BE Semiconductor and SPECTRAL MEDICAL
The main advantage of trading using opposite BE Semiconductor and SPECTRAL MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BE Semiconductor position performs unexpectedly, SPECTRAL MEDICAL 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 SPECTRAL MEDICAL will offset losses from the drop in SPECTRAL MEDICAL's long position.| BE Semiconductor vs. Perdoceo Education | BE Semiconductor vs. LANDSEA GREEN MANAGEMENT | BE Semiconductor vs. Perseus Mining Limited | BE Semiconductor vs. Laureate Education |
| SPECTRAL MEDICAL vs. Thermo Fisher Scientific | SPECTRAL MEDICAL vs. Danaher | SPECTRAL MEDICAL vs. Siemens Healthineers AG | SPECTRAL MEDICAL vs. Agilent Technologies |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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