Correlation Between Benson Hill, and Enlightify
Can any of the company-specific risk be diversified away by investing in both Benson Hill, and Enlightify 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 Benson Hill, and Enlightify into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benson Hill, Common and Enlightify, you can compare the effects of market volatilities on Benson Hill, and Enlightify 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 Benson Hill, with a short position of Enlightify. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benson Hill, and Enlightify.
Diversification Opportunities for Benson Hill, and Enlightify
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Benson and Enlightify is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Benson Hill, Common and Enlightify in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enlightify and Benson Hill, 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 Benson Hill, Common are associated (or correlated) with Enlightify. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enlightify has no effect on the direction of Benson Hill, i.e., Benson Hill, and Enlightify go up and down completely randomly.
Pair Corralation between Benson Hill, and Enlightify
Given the investment horizon of 90 days Benson Hill, Common is expected to generate 2.85 times more return on investment than Enlightify. However, Benson Hill, is 2.85 times more volatile than Enlightify. It trades about 0.1 of its potential returns per unit of risk. Enlightify is currently generating about 0.17 per unit of risk. If you would invest 248.00 in Benson Hill, Common on November 4, 2024 and sell it today you would earn a total of 13.00 from holding Benson Hill, Common or generate 5.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Benson Hill, Common vs. Enlightify
Performance |
| Timeline |
| Benson Hill, Common |
| Enlightify |
Benson Hill, and Enlightify Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benson Hill, and Enlightify
The main advantage of trading using opposite Benson Hill, and Enlightify positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benson Hill, position performs unexpectedly, Enlightify 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 Enlightify will offset losses from the drop in Enlightify's long position.| Benson Hill, vs. Intrepid Potash | Benson Hill, vs. Bioceres Crop Solutions | Benson Hill, vs. E I du | Benson Hill, vs. FMC Corporation |
| Enlightify vs. Grupo Aeroportuario del | Enlightify vs. Finnair Oyj | Enlightify vs. Westinghouse Air Brake | Enlightify vs. Porvair plc |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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