Correlation Between Benchmark Electronics and Moving IMage
Can any of the company-specific risk be diversified away by investing in both Benchmark Electronics and Moving IMage 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 Moving IMage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benchmark Electronics and Moving iMage Technologies, you can compare the effects of market volatilities on Benchmark Electronics and Moving IMage 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 Moving IMage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benchmark Electronics and Moving IMage.
Diversification Opportunities for Benchmark Electronics and Moving IMage
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Benchmark and Moving is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Benchmark Electronics and Moving iMage Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moving iMage Technologies 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 Moving IMage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moving iMage Technologies has no effect on the direction of Benchmark Electronics i.e., Benchmark Electronics and Moving IMage go up and down completely randomly.
Pair Corralation between Benchmark Electronics and Moving IMage
Considering the 90-day investment horizon Benchmark Electronics is expected to generate 0.41 times more return on investment than Moving IMage. However, Benchmark Electronics is 2.47 times less risky than Moving IMage. It trades about 0.08 of its potential returns per unit of risk. Moving iMage Technologies is currently generating about 0.02 per unit of risk. If you would invest 2,819 in Benchmark Electronics on November 3, 2024 and sell it today you would earn a total of 1,447 from holding Benchmark Electronics or generate 51.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Benchmark Electronics vs. Moving iMage Technologies
Performance |
| Timeline |
| Benchmark Electronics |
| Moving iMage Technologies |
Benchmark Electronics and Moving IMage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benchmark Electronics and Moving IMage
The main advantage of trading using opposite Benchmark Electronics and Moving IMage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benchmark Electronics position performs unexpectedly, Moving IMage 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 Moving IMage will offset losses from the drop in Moving IMage's long position.| Benchmark Electronics vs. Sanmina | Benchmark Electronics vs. Methode Electronics | Benchmark Electronics vs. OSI Systems | Benchmark Electronics vs. Celestica |
| Moving IMage vs. Franklin Wireless Corp | Moving IMage vs. Wialan Technologies | Moving IMage vs. TPT Global Tech | Moving IMage vs. Comtech Telecommunications Corp |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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