Correlation Between Benchmark Electronics and MicroCloud Hologram
Can any of the company-specific risk be diversified away by investing in both Benchmark Electronics and MicroCloud Hologram 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 MicroCloud Hologram into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benchmark Electronics and MicroCloud Hologram, you can compare the effects of market volatilities on Benchmark Electronics and MicroCloud Hologram 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 MicroCloud Hologram. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benchmark Electronics and MicroCloud Hologram.
Diversification Opportunities for Benchmark Electronics and MicroCloud Hologram
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Benchmark and MicroCloud is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Benchmark Electronics and MicroCloud Hologram in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MicroCloud Hologram 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 MicroCloud Hologram. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MicroCloud Hologram has no effect on the direction of Benchmark Electronics i.e., Benchmark Electronics and MicroCloud Hologram go up and down completely randomly.
Pair Corralation between Benchmark Electronics and MicroCloud Hologram
Considering the 90-day investment horizon Benchmark Electronics is expected to generate 0.31 times more return on investment than MicroCloud Hologram. However, Benchmark Electronics is 3.21 times less risky than MicroCloud Hologram. It trades about 0.12 of its potential returns per unit of risk. MicroCloud Hologram is currently generating about -0.18 per unit of risk. If you would invest 4,517 in Benchmark Electronics on August 27, 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Benchmark Electronics vs. MicroCloud Hologram
Performance |
| Timeline |
| Benchmark Electronics |
| MicroCloud Hologram |
Benchmark Electronics and MicroCloud Hologram Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benchmark Electronics and MicroCloud Hologram
The main advantage of trading using opposite Benchmark Electronics and MicroCloud Hologram positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benchmark Electronics position performs unexpectedly, MicroCloud Hologram 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 MicroCloud Hologram will offset losses from the drop in MicroCloud Hologram's long position.| Benchmark Electronics vs. Plexus Corp | Benchmark Electronics vs. Jabil Circuit | Benchmark Electronics vs. Sanmina | Benchmark Electronics vs. Methode Electronics |
| MicroCloud Hologram vs. Plexus Corp | MicroCloud Hologram vs. Jabil Circuit | MicroCloud Hologram vs. Sanmina | MicroCloud Hologram 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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