Correlation Between BE Semiconductor and Kendrion
Can any of the company-specific risk be diversified away by investing in both BE Semiconductor and Kendrion 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 Kendrion 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 Kendrion NV, you can compare the effects of market volatilities on BE Semiconductor and Kendrion 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 Kendrion. Check out your portfolio center. Please also check ongoing floating volatility patterns of BE Semiconductor and Kendrion.
Diversification Opportunities for BE Semiconductor and Kendrion
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BESI and Kendrion is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding BE Semiconductor Industries and Kendrion NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kendrion NV 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 Kendrion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kendrion NV has no effect on the direction of BE Semiconductor i.e., BE Semiconductor and Kendrion go up and down completely randomly.
Pair Corralation between BE Semiconductor and Kendrion
Assuming the 90 days trading horizon BE Semiconductor Industries is expected to under-perform the Kendrion. In addition to that, BE Semiconductor is 1.73 times more volatile than Kendrion NV. It trades about -0.1 of its total potential returns per unit of risk. Kendrion NV is currently generating about 0.14 per unit of volatility. If you would invest 1,199 in Kendrion NV on March 4, 2024 and sell it today you would earn a total of 201.00 from holding Kendrion NV or generate 16.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
BE Semiconductor Industries vs. Kendrion NV
Performance |
Timeline |
BE Semiconductor Ind |
Kendrion NV |
BE Semiconductor and Kendrion Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BE Semiconductor and Kendrion
The main advantage of trading using opposite BE Semiconductor and Kendrion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BE Semiconductor position performs unexpectedly, Kendrion 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 Kendrion will offset losses from the drop in Kendrion's long position.BE Semiconductor vs. ASM International NV | BE Semiconductor vs. ASR Nederland NV | BE Semiconductor vs. Koninklijke Ahold Delhaize | BE Semiconductor vs. NN Group NV |
Kendrion vs. TKH Group NV | Kendrion vs. NV Nederlandsche Apparatenfabriek | Kendrion vs. Brunel International NV | Kendrion vs. Aalberts Industries NV |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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