Correlation Between Calibre Mining and BE Semiconductor
Can any of the company-specific risk be diversified away by investing in both Calibre Mining 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 Calibre Mining and BE Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calibre Mining Corp and BE Semiconductor Industries, you can compare the effects of market volatilities on Calibre Mining 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 Calibre Mining with a short position of BE Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and BE Semiconductor.
Diversification Opportunities for Calibre Mining and BE Semiconductor
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calibre and BSI is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp 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 Calibre Mining 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 Calibre Mining Corp 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 Calibre Mining i.e., Calibre Mining and BE Semiconductor go up and down completely randomly.
Pair Corralation between Calibre Mining and BE Semiconductor
Assuming the 90 days trading horizon Calibre Mining Corp is expected to generate 0.99 times more return on investment than BE Semiconductor. However, Calibre Mining Corp is 1.01 times less risky than BE Semiconductor. It trades about 0.08 of its potential returns per unit of risk. BE Semiconductor Industries is currently generating about 0.06 per unit of risk. If you would invest 65.00 in Calibre Mining Corp on August 28, 2024 and sell it today you would earn a total of 96.00 from holding Calibre Mining Corp or generate 147.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calibre Mining Corp vs. BE Semiconductor Industries
Performance |
| Timeline |
| Calibre Mining Corp |
| BE Semiconductor Ind |
Calibre Mining and BE Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calibre Mining and BE Semiconductor
The main advantage of trading using opposite Calibre Mining and BE Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calibre Mining 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.| Calibre Mining vs. Amkor Technology | Calibre Mining vs. Evolution Mining Limited | Calibre Mining vs. THORNEY TECHS LTD | Calibre Mining vs. LION ONE METALS |
| BE Semiconductor vs. Apple Inc | BE Semiconductor vs. Apple Inc | BE Semiconductor vs. Apple Inc | BE Semiconductor 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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