Correlation Between Sligro Food and BE Semiconductor
Can any of the company-specific risk be diversified away by investing in both Sligro Food and BE Semiconductor 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 Sligro Food and BE Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sligro Food Group and BE Semiconductor Industries, you can compare the effects of market volatilities on Sligro Food and BE Semiconductor 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 Sligro Food with a short position of BE Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sligro Food and BE Semiconductor.
Diversification Opportunities for Sligro Food and BE Semiconductor
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sligro and BESI is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Sligro Food Group and BE Semiconductor Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BE Semiconductor Ind and Sligro Food 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 Sligro Food Group are associated (or correlated) with BE Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BE Semiconductor Ind has no effect on the direction of Sligro Food i.e., Sligro Food and BE Semiconductor go up and down completely randomly.
Pair Corralation between Sligro Food and BE Semiconductor
Assuming the 90 days trading horizon Sligro Food Group is expected to under-perform the BE Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Sligro Food Group is 2.72 times less risky than BE Semiconductor. The stock trades about -0.29 of its potential returns per unit of risk. The BE Semiconductor Industries is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 10,060 in BE Semiconductor Industries on September 3, 2024 and sell it today you would earn a total of 1,240 from holding BE Semiconductor Industries or generate 12.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sligro Food Group vs. BE Semiconductor Industries
Performance |
| Timeline |
| Sligro Food Group |
| BE Semiconductor Ind |
Sligro Food and BE Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sligro Food and BE Semiconductor
The main advantage of trading using opposite Sligro Food and BE Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sligro Food position performs unexpectedly, BE Semiconductor 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 BE Semiconductor will offset losses from the drop in BE Semiconductor's long position.| Sligro Food vs. TKH Group NV | Sligro Food vs. Brunel International NV | Sligro Food vs. Koninklijke BAM Groep | Sligro Food vs. Koninklijke Vopak NV |
| BE Semiconductor vs. ASM International NV | BE Semiconductor vs. ASML Holding NV | BE Semiconductor vs. ASR Nederland NV | BE Semiconductor vs. Koninklijke Ahold Delhaize |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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