Correlation Between AU Optronics and Benchmark Electronics
Can any of the company-specific risk be diversified away by investing in both AU Optronics and Benchmark Electronics 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 AU Optronics and Benchmark Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AU Optronics Corp and Benchmark Electronics, you can compare the effects of market volatilities on AU Optronics and Benchmark Electronics 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 AU Optronics with a short position of Benchmark Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of AU Optronics and Benchmark Electronics.
Diversification Opportunities for AU Optronics and Benchmark Electronics
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AUOTY and Benchmark is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding AU Optronics Corp and Benchmark Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benchmark Electronics and AU Optronics 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 AU Optronics Corp are associated (or correlated) with Benchmark Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benchmark Electronics has no effect on the direction of AU Optronics i.e., AU Optronics and Benchmark Electronics go up and down completely randomly.
Pair Corralation between AU Optronics and Benchmark Electronics
If you would invest 4,295 in Benchmark Electronics on August 24, 2024 and sell it today you would earn a total of 470.00 from holding Benchmark Electronics or generate 10.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
AU Optronics Corp vs. Benchmark Electronics
Performance |
| Timeline |
| AU Optronics Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Benchmark Electronics |
AU Optronics and Benchmark Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AU Optronics and Benchmark Electronics
The main advantage of trading using opposite AU Optronics and Benchmark Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AU Optronics position performs unexpectedly, Benchmark Electronics 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 Benchmark Electronics will offset losses from the drop in Benchmark Electronics' long position.| AU Optronics vs. alpha En | AU Optronics vs. Alps Electric Co | AU Optronics vs. Bitmine Immersion Technologies | AU Optronics vs. American Aires |
| Benchmark Electronics vs. Plexus Corp | Benchmark Electronics vs. Jabil Circuit | Benchmark Electronics vs. Rogers | Benchmark Electronics vs. Sanmina |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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