Correlation Between Benchmark Electronics and AT S
Can any of the company-specific risk be diversified away by investing in both Benchmark Electronics and AT S 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 Benchmark Electronics and AT S into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benchmark Electronics and AT S Austria, you can compare the effects of market volatilities on Benchmark Electronics and AT S 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 Benchmark Electronics with a short position of AT S. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benchmark Electronics and AT S.
Diversification Opportunities for Benchmark Electronics and AT S
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Benchmark and ASAAF is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Benchmark Electronics and AT S Austria in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AT S Austria and Benchmark Electronics 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 Benchmark Electronics are associated (or correlated) with AT S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AT S Austria has no effect on the direction of Benchmark Electronics i.e., Benchmark Electronics and AT S go up and down completely randomly.
Pair Corralation between Benchmark Electronics and AT S
If you would invest 4,517 in Benchmark Electronics on August 28, 2024 and sell it today you would earn a total of 330.00 from holding Benchmark Electronics or generate 7.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Benchmark Electronics vs. AT S Austria
Performance |
| Timeline |
| Benchmark Electronics |
| AT S Austria |
Benchmark Electronics and AT S Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benchmark Electronics and AT S
The main advantage of trading using opposite Benchmark Electronics and AT S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benchmark Electronics position performs unexpectedly, AT S 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 AT S will offset losses from the drop in AT S's long position.| Benchmark Electronics vs. Plexus Corp | Benchmark Electronics vs. Jabil Circuit | Benchmark Electronics vs. Sanmina | Benchmark Electronics vs. Methode 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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