Correlation Between SemiLEDS and Bel Fuse
Can any of the company-specific risk be diversified away by investing in both SemiLEDS and Bel Fuse 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 SemiLEDS and Bel Fuse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SemiLEDS and Bel Fuse A, you can compare the effects of market volatilities on SemiLEDS and Bel Fuse 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 SemiLEDS with a short position of Bel Fuse. Check out your portfolio center. Please also check ongoing floating volatility patterns of SemiLEDS and Bel Fuse.
Diversification Opportunities for SemiLEDS and Bel Fuse
Pay attention - limited upside
The 3 months correlation between SemiLEDS and Bel is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding SemiLEDS and Bel Fuse A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bel Fuse A and SemiLEDS 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 SemiLEDS are associated (or correlated) with Bel Fuse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bel Fuse A has no effect on the direction of SemiLEDS i.e., SemiLEDS and Bel Fuse go up and down completely randomly.
Pair Corralation between SemiLEDS and Bel Fuse
Given the investment horizon of 90 days SemiLEDS is expected to generate 2.24 times more return on investment than Bel Fuse. However, SemiLEDS is 2.24 times more volatile than Bel Fuse A. It trades about 0.05 of its potential returns per unit of risk. Bel Fuse A is currently generating about 0.02 per unit of risk. If you would invest 186.00 in SemiLEDS on May 27, 2025 and sell it today you would earn a total of 5.00 from holding SemiLEDS or generate 2.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
SemiLEDS vs. Bel Fuse A
Performance |
| Timeline |
| SemiLEDS |
| Bel Fuse A |
SemiLEDS and Bel Fuse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SemiLEDS and Bel Fuse
The main advantage of trading using opposite SemiLEDS and Bel Fuse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SemiLEDS position performs unexpectedly, Bel Fuse 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 Bel Fuse will offset losses from the drop in Bel Fuse's long position.| SemiLEDS vs. Nano Labs | SemiLEDS vs. ChipMOS Technologies | SemiLEDS vs. Wisekey International Holding | SemiLEDS vs. Silicon Motion Technology |
| Bel Fuse vs. Bel Fuse B | Bel Fuse vs. Benchmark Electronics | Bel Fuse vs. Methode Electronics | Bel Fuse vs. Richardson Electronics |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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