Correlation Between BE Semiconductor and Calibre Mining
Can any of the company-specific risk be diversified away by investing in both BE Semiconductor and Calibre Mining 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 Calibre Mining 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 Calibre Mining Corp, you can compare the effects of market volatilities on BE Semiconductor and Calibre Mining 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 Calibre Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of BE Semiconductor and Calibre Mining.
Diversification Opportunities for BE Semiconductor and Calibre Mining
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BSI and Calibre is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding BE Semiconductor Industries and Calibre Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calibre Mining Corp 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 Calibre Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calibre Mining Corp has no effect on the direction of BE Semiconductor i.e., BE Semiconductor and Calibre Mining go up and down completely randomly.
Pair Corralation between BE Semiconductor and Calibre Mining
Assuming the 90 days trading horizon BE Semiconductor is expected to generate 1.45 times less return on investment than Calibre Mining. In addition to that, BE Semiconductor is 1.01 times more volatile than Calibre Mining Corp. It trades about 0.05 of its total potential returns per unit of risk. Calibre Mining Corp is currently generating about 0.08 per unit of volatility. If you would invest 61.00 in Calibre Mining Corp on August 24, 2024 and sell it today you would earn a total of 99.00 from holding Calibre Mining Corp or generate 162.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BE Semiconductor Industries vs. Calibre Mining Corp
Performance |
| Timeline |
| BE Semiconductor Ind |
| Calibre Mining Corp |
BE Semiconductor and Calibre Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BE Semiconductor and Calibre Mining
The main advantage of trading using opposite BE Semiconductor and Calibre Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BE Semiconductor position performs unexpectedly, Calibre Mining 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 Calibre Mining will offset losses from the drop in Calibre Mining's long position.| BE Semiconductor vs. AIR LIQUIDE ADR | BE Semiconductor vs. Wizz Air Holdings | BE Semiconductor vs. PICKN PAY STORES | BE Semiconductor vs. WIZZ AIR HLDGUNSPADR4 |
| Calibre Mining vs. Apple Inc | Calibre Mining vs. Apple Inc | Calibre Mining vs. Apple Inc | Calibre Mining vs. Apple Inc |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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