Correlation Between ORMAT TECHNOLOGIES and BE Semiconductor

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

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

Diversification Opportunities for ORMAT TECHNOLOGIES and BE Semiconductor

0.12

Correlation Coefficient

ORMAT TECHNOLOGIES  BE Semiconductor

Average diversification

The 3 months correlation between ORMAT and BSI is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding ORMAT TECHNOLOGIES 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 ORMAT TECHNOLOGIES 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 ORMAT TECHNOLOGIES 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 ORMAT TECHNOLOGIES i.e., ORMAT TECHNOLOGIES and BE Semiconductor go up and down completely randomly.

Pair Corralation between ORMAT TECHNOLOGIES and BE Semiconductor

Assuming the 90 days trading horizon ORMAT TECHNOLOGIES is expected to generate 1.18 times less return on investment than BE Semiconductor. But when comparing it to its historical volatility, ORMAT TECHNOLOGIES is 1.59 times less risky than BE Semiconductor. It trades about 0.07 of its potential returns per unit of risk. BE Semiconductor Industries is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  14,530  in BE Semiconductor Industries on October 8, 2025 and sell it today you would earn a total of  850.00  from holding BE Semiconductor Industries or generate 5.85% return on investment over 90 days.

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

ORMAT TECHNOLOGIES  vs.  BE Semiconductor Industries

ORMAT TECHNOLOGIES

Risk-Adjusted Performance

Mild

Over the last 90 days ORMAT TECHNOLOGIES has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively uncertain basic indicators, ORMAT TECHNOLOGIES may actually be approaching a critical reversion point that can send shares even higher in February 2026.

BE Semiconductor Ind

Risk-Adjusted Performance

Soft

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 comparatively uncertain basic indicators, BE Semiconductor may actually be approaching a critical reversion point that can send shares even higher in February 2026.

Pair Trading with ORMAT TECHNOLOGIES and BE Semiconductor

The main advantage of trading using opposite ORMAT TECHNOLOGIES and BE Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ORMAT TECHNOLOGIES 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 ORMAT TECHNOLOGIES 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.