Correlation Between BE Semiconductor and Azerion Group

Can any of the company-specific risk be diversified away by investing in both BE Semiconductor and Azerion Group 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 Azerion Group 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 Azerion Group NV, you can compare the effects of market volatilities on BE Semiconductor and Azerion Group 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 Azerion Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of BE Semiconductor and Azerion Group.

Diversification Opportunities for BE Semiconductor and Azerion Group

0.27

Correlation Coefficient

BE Semiconductor  Azerion Group

Modest diversification

The 3 months correlation between BESI and Azerion is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding BE Semiconductor Industries and Azerion Group NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Azerion Group 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 Azerion Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Azerion Group NV has no effect on the direction of BE Semiconductor i.e., BE Semiconductor and Azerion Group go up and down completely randomly.

Pair Corralation between BE Semiconductor and Azerion Group

Assuming the 90 days trading horizon BE Semiconductor Industries is expected to under-perform the Azerion Group. But the stock apears to be less risky and, when comparing its historical volatility, BE Semiconductor Industries is 1.84 times less risky than Azerion Group. The stock trades about -0.16 of its potential returns per unit of risk. The Azerion Group NV is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  114.00  in Azerion Group NV on December 30, 2024 and sell it today you would earn a total of  24.00  from holding Azerion Group NV or generate 21.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

BE Semiconductor Industries  vs.  Azerion Group NV

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.

Azerion Group NV

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Azerion Group NV are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Azerion Group unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BE Semiconductor and Azerion Group

The main advantage of trading using opposite BE Semiconductor and Azerion Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BE Semiconductor position performs unexpectedly, Azerion Group 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 Azerion Group will offset losses from the drop in Azerion Group's long position.

The idea behind BE Semiconductor Industries and Azerion Group NV 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 Commodity Directory module to find actively traded commodities issued by global exchanges.