Correlation Between Benchmark Electronics and Marie Brizard
Can any of the company-specific risk be diversified away by investing in both Benchmark Electronics and Marie Brizard 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 Marie Brizard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benchmark Electronics and Marie Brizard Wine, you can compare the effects of market volatilities on Benchmark Electronics and Marie Brizard 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 Marie Brizard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benchmark Electronics and Marie Brizard.
Diversification Opportunities for Benchmark Electronics and Marie Brizard
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Benchmark and Marie is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Benchmark Electronics and Marie Brizard Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marie Brizard Wine 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 Marie Brizard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marie Brizard Wine has no effect on the direction of Benchmark Electronics i.e., Benchmark Electronics and Marie Brizard go up and down completely randomly.
Pair Corralation between Benchmark Electronics and Marie Brizard
Assuming the 90 days horizon Benchmark Electronics is expected to generate 1.72 times more return on investment than Marie Brizard. However, Benchmark Electronics is 1.72 times more volatile than Marie Brizard Wine. It trades about -0.07 of its potential returns per unit of risk. Marie Brizard Wine is currently generating about -0.15 per unit of risk. If you would invest 4,562 in Benchmark Electronics on October 17, 2024 and sell it today you would lose (102.00) from holding Benchmark Electronics or give up 2.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Benchmark Electronics vs. Marie Brizard Wine
Performance |
| Timeline |
| Benchmark Electronics |
| Marie Brizard Wine |
Benchmark Electronics and Marie Brizard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benchmark Electronics and Marie Brizard
The main advantage of trading using opposite Benchmark Electronics and Marie Brizard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benchmark Electronics position performs unexpectedly, Marie Brizard 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 Marie Brizard will offset losses from the drop in Marie Brizard's long position.| Benchmark Electronics vs. Telecom Argentina SA | Benchmark Electronics vs. Fair Isaac Corp | Benchmark Electronics vs. Alaska Air Group | Benchmark Electronics vs. Shenandoah Telecommunications |
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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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