Correlation Between Benchmark Electronics and CHAROEN POKPHAND
Can any of the company-specific risk be diversified away by investing in both Benchmark Electronics and CHAROEN POKPHAND 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 CHAROEN POKPHAND into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benchmark Electronics and CHAROEN POKPHAND, you can compare the effects of market volatilities on Benchmark Electronics and CHAROEN POKPHAND 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 CHAROEN POKPHAND. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benchmark Electronics and CHAROEN POKPHAND.
Diversification Opportunities for Benchmark Electronics and CHAROEN POKPHAND
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Benchmark and CHAROEN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Benchmark Electronics and CHAROEN POKPHAND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHAROEN POKPHAND 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 CHAROEN POKPHAND. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHAROEN POKPHAND has no effect on the direction of Benchmark Electronics i.e., Benchmark Electronics and CHAROEN POKPHAND go up and down completely randomly.
Pair Corralation between Benchmark Electronics and CHAROEN POKPHAND
If you would invest (100.00) in CHAROEN POKPHAND on October 16, 2024 and sell it today you would earn a total of 100.00 from holding CHAROEN POKPHAND or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Benchmark Electronics vs. CHAROEN POKPHAND
Performance |
| Timeline |
| Benchmark Electronics |
| CHAROEN POKPHAND |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Benchmark Electronics and CHAROEN POKPHAND Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benchmark Electronics and CHAROEN POKPHAND
The main advantage of trading using opposite Benchmark Electronics and CHAROEN POKPHAND positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benchmark Electronics position performs unexpectedly, CHAROEN POKPHAND 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 CHAROEN POKPHAND will offset losses from the drop in CHAROEN POKPHAND's long position.| Benchmark Electronics vs. Easy Software AG | Benchmark Electronics vs. Constellation Software | Benchmark Electronics vs. CanSino Biologics | Benchmark Electronics vs. YATRA ONLINE DL 0001 |
| CHAROEN POKPHAND vs. OFFICE DEPOT | CHAROEN POKPHAND vs. Electronic Arts | CHAROEN POKPHAND vs. CITY OFFICE REIT | CHAROEN POKPHAND vs. Benchmark 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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