Correlation Between Benchmark Electronics and Ondas Holdings
Can any of the company-specific risk be diversified away by investing in both Benchmark Electronics and Ondas Holdings 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 Ondas Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benchmark Electronics and Ondas Holdings, you can compare the effects of market volatilities on Benchmark Electronics and Ondas Holdings 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 Ondas Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benchmark Electronics and Ondas Holdings.
Diversification Opportunities for Benchmark Electronics and Ondas Holdings
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Benchmark and Ondas is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Benchmark Electronics and Ondas Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ondas Holdings 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 Ondas Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ondas Holdings has no effect on the direction of Benchmark Electronics i.e., Benchmark Electronics and Ondas Holdings go up and down completely randomly.
Pair Corralation between Benchmark Electronics and Ondas Holdings
Considering the 90-day investment horizon Benchmark Electronics is expected to generate 2.83 times less return on investment than Ondas Holdings. But when comparing it to its historical volatility, Benchmark Electronics is 3.52 times less risky than Ondas Holdings. It trades about 0.06 of its potential returns per unit of risk. Ondas Holdings is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 178.00 in Ondas Holdings on October 11, 2024 and sell it today you would earn a total of 76.00 from holding Ondas Holdings or generate 42.7% 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. Ondas Holdings
Performance |
| Timeline |
| Benchmark Electronics |
| Ondas Holdings |
Benchmark Electronics and Ondas Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benchmark Electronics and Ondas Holdings
The main advantage of trading using opposite Benchmark Electronics and Ondas Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benchmark Electronics position performs unexpectedly, Ondas Holdings 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 Ondas Holdings will offset losses from the drop in Ondas Holdings' long position.| Benchmark Electronics vs. Sanmina | Benchmark Electronics vs. Methode Electronics | Benchmark Electronics vs. OSI Systems | Benchmark Electronics vs. Celestica |
| Ondas Holdings vs. Mobilicom Limited Warrants | Ondas Holdings vs. Siyata Mobile | Ondas Holdings vs. SatixFy Communications | Ondas Holdings vs. Actelis Networks |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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