Correlation Between Benson Hill, and Yara International
Can any of the company-specific risk be diversified away by investing in both Benson Hill, and Yara International 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 Yara International 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 Yara International ASA, you can compare the effects of market volatilities on Benson Hill, and Yara International 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 Yara International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benson Hill, and Yara International.
Diversification Opportunities for Benson Hill, and Yara International
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Benson and Yara is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Benson Hill, Common and Yara International ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yara International ASA 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 Yara International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yara International ASA has no effect on the direction of Benson Hill, i.e., Benson Hill, and Yara International go up and down completely randomly.
Pair Corralation between Benson Hill, and Yara International
Given the investment horizon of 90 days Benson Hill, Common is expected to under-perform the Yara International. In addition to that, Benson Hill, is 3.02 times more volatile than Yara International ASA. It trades about -0.63 of its total potential returns per unit of risk. Yara International ASA is currently generating about -0.23 per unit of volatility. If you would invest 1,523 in Yara International ASA on August 31, 2024 and sell it today you would lose (112.00) from holding Yara International ASA or give up 7.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Benson Hill, Common vs. Yara International ASA
Performance |
| Timeline |
| Benson Hill, Common |
| Yara International ASA |
Benson Hill, and Yara International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benson Hill, and Yara International
The main advantage of trading using opposite Benson Hill, and Yara International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benson Hill, position performs unexpectedly, Yara International 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 Yara International will offset losses from the drop in Yara International'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 |
| Yara International vs. Nutrien | Yara International vs. Origin Agritech | Yara International vs. American Vanguard | Yara International vs. Scotts Miracle Gro |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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