Correlation Between BE Semiconductor and Signify NV

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

Diversification Opportunities for BE Semiconductor and Signify NV

0.64

Correlation Coefficient

BE Semiconductor  Signify NV

Poor diversification

The 3 months correlation between BESI and Signify is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding BE Semiconductor Industries and Signify NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Signify 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 Signify NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Signify NV has no effect on the direction of BE Semiconductor i.e., BE Semiconductor and Signify NV go up and down completely randomly.

Pair Corralation between BE Semiconductor and Signify NV

Assuming the 90 days trading horizon BE Semiconductor is expected to generate 1.16 times less return on investment than Signify NV. In addition to that, BE Semiconductor is 1.18 times more volatile than Signify NV. It trades about 0.04 of its total potential returns per unit of risk. Signify NV is currently generating about 0.05 per unit of volatility. If you would invest  2,046  in Signify NV on May 10, 2025 and sell it today you would earn a total of  122.00  from holding Signify NV or generate 5.96% return on investment over 90 days.

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

BE Semiconductor Industries  vs.  Signify NV

BE Semiconductor Ind

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in BE Semiconductor Industries are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, BE Semiconductor is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Signify NV

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Signify NV are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Signify NV may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with BE Semiconductor and Signify NV

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

The idea behind BE Semiconductor Industries and Signify 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.