Correlation Between Benchmark Electronics and Bitmine Immersion
Can any of the company-specific risk be diversified away by investing in both Benchmark Electronics and Bitmine Immersion 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 Bitmine Immersion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benchmark Electronics and Bitmine Immersion Technologies, you can compare the effects of market volatilities on Benchmark Electronics and Bitmine Immersion 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 Bitmine Immersion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benchmark Electronics and Bitmine Immersion.
Diversification Opportunities for Benchmark Electronics and Bitmine Immersion
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Benchmark and Bitmine is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Benchmark Electronics and Bitmine Immersion Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitmine Immersion 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 Bitmine Immersion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitmine Immersion has no effect on the direction of Benchmark Electronics i.e., Benchmark Electronics and Bitmine Immersion go up and down completely randomly.
Pair Corralation between Benchmark Electronics and Bitmine Immersion
Considering the 90-day investment horizon Benchmark Electronics is expected to generate 14.42 times less return on investment than Bitmine Immersion. But when comparing it to its historical volatility, Benchmark Electronics is 7.16 times less risky than Bitmine Immersion. It trades about 0.16 of its potential returns per unit of risk. Bitmine Immersion Technologies is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 12.00 in Bitmine Immersion Technologies on August 24, 2024 and sell it today you would earn a total of 25.00 from holding Bitmine Immersion Technologies or generate 208.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Benchmark Electronics vs. Bitmine Immersion Technologies
Performance |
| Timeline |
| Benchmark Electronics |
| Bitmine Immersion |
Benchmark Electronics and Bitmine Immersion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benchmark Electronics and Bitmine Immersion
The main advantage of trading using opposite Benchmark Electronics and Bitmine Immersion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benchmark Electronics position performs unexpectedly, Bitmine Immersion 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 Bitmine Immersion will offset losses from the drop in Bitmine Immersion's long position.| Benchmark Electronics vs. Plexus Corp | Benchmark Electronics vs. Jabil Circuit | Benchmark Electronics vs. Rogers | Benchmark Electronics vs. Sanmina |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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