Correlation Between Lasertec and BE Semiconductor

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

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

Diversification Opportunities for Lasertec and BE Semiconductor

0.83

Correlation Coefficient

Lasertec  BE Semiconductor

Very poor diversification

The 3 months correlation between Lasertec and BESIY is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Lasertec 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 Lasertec 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 Lasertec 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 Lasertec i.e., Lasertec and BE Semiconductor go up and down completely randomly.

Pair Corralation between Lasertec and BE Semiconductor

Assuming the 90 days horizon Lasertec is expected to generate 3.92 times less return on investment than BE Semiconductor. In addition to that, Lasertec is 1.09 times more volatile than BE Semiconductor Industries. It trades about 0.03 of its total potential returns per unit of risk. BE Semiconductor Industries is currently generating about 0.14 per unit of volatility. If you would invest  10,873  in BE Semiconductor Industries on May 4, 2025 and sell it today you would earn a total of  2,809  from holding BE Semiconductor Industries or generate 25.83% return on investment over 90 days.

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

Lasertec  vs.  BE Semiconductor Industries

Lasertec

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Lasertec are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental indicators, Lasertec may actually be approaching a critical reversion point that can send shares even higher in September 2025.

BE Semiconductor Ind

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in BE Semiconductor Industries are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak forward indicators, BE Semiconductor showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lasertec and BE Semiconductor

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

Check out your portfolio center.

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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.