Correlation Between POLENERGIA and BE Semiconductor

Can any of the company-specific risk be diversified away by investing in both POLENERGIA 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 POLENERGIA and BE Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between POLENERGIA SA ZY and BE Semiconductor Industries, you can compare the effects of market volatilities on POLENERGIA 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 POLENERGIA with a short position of BE Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of POLENERGIA and BE Semiconductor.

Diversification Opportunities for POLENERGIA and BE Semiconductor

0.0

Correlation Coefficient

POLENERGIA  BE Semiconductor

Pay attention - limited upside

The 3 months correlation between POLENERGIA and BSI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding POLENERGIA SA ZY 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 POLENERGIA 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 POLENERGIA SA ZY 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 POLENERGIA i.e., POLENERGIA and BE Semiconductor go up and down completely randomly.

Pair Corralation between POLENERGIA and BE Semiconductor

If you would invest  0.00  in POLENERGIA SA ZY on December 22, 2024 and sell it today you would earn a total of  0.00  from holding POLENERGIA SA ZY or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

POLENERGIA SA ZY  vs.  BE Semiconductor Industries

POLENERGIA SA ZY

Risk-Adjusted Performance

Very Weak

Over the last 90 days POLENERGIA SA ZY has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, POLENERGIA is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

BE Semiconductor Ind

Risk-Adjusted Performance

Very Weak

Over the last 90 days BE Semiconductor Industries has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with POLENERGIA and BE Semiconductor

The main advantage of trading using opposite POLENERGIA and BE Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POLENERGIA 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.

The idea behind POLENERGIA SA ZY and BE Semiconductor Industries pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.