Correlation Between BE Semiconductor and Sony Group

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

Diversification Opportunities for BE Semiconductor and Sony Group

0.0

Correlation Coefficient

BE Semiconductor  Sony Group

Pay attention - limited upside

The 3 months correlation between BSI and Sony is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BE Semiconductor Industries and Sony Group Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sony Group Corp 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 Sony Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sony Group Corp has no effect on the direction of BE Semiconductor i.e., BE Semiconductor and Sony Group go up and down completely randomly.

Pair Corralation between BE Semiconductor and Sony Group

If you would invest  9,918  in BE Semiconductor Industries on October 23, 2024 and sell it today you would earn a total of  4,717  from holding BE Semiconductor Industries or generate 47.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

BE Semiconductor Industries  vs.  Sony Group Corp

BE Semiconductor Ind

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in BE Semiconductor Industries are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, BE Semiconductor unveiled solid returns over the last few months and may actually be approaching a breakup point.

Sony Group Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sony Group Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Sony Group is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with BE Semiconductor and Sony Group

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

The idea behind BE Semiconductor Industries and Sony Group Corp 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.