Correlation Between Benchmark Electronics and CHINA TONTINE
Can any of the company-specific risk be diversified away by investing in both Benchmark Electronics and CHINA TONTINE 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 CHINA TONTINE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benchmark Electronics and CHINA TONTINE WINES, you can compare the effects of market volatilities on Benchmark Electronics and CHINA TONTINE 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 CHINA TONTINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benchmark Electronics and CHINA TONTINE.
Diversification Opportunities for Benchmark Electronics and CHINA TONTINE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Benchmark and CHINA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Benchmark Electronics and CHINA TONTINE WINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA TONTINE WINES 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 CHINA TONTINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA TONTINE WINES has no effect on the direction of Benchmark Electronics i.e., Benchmark Electronics and CHINA TONTINE go up and down completely randomly.
Pair Corralation between Benchmark Electronics and CHINA TONTINE
If you would invest 7.00 in CHINA TONTINE WINES on September 13, 2024 and sell it today you would earn a total of 0.00 from holding CHINA TONTINE WINES or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Benchmark Electronics vs. CHINA TONTINE WINES
Performance |
| Timeline |
| Benchmark Electronics |
| CHINA TONTINE WINES |
Benchmark Electronics and CHINA TONTINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benchmark Electronics and CHINA TONTINE
The main advantage of trading using opposite Benchmark Electronics and CHINA TONTINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benchmark Electronics position performs unexpectedly, CHINA TONTINE 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 CHINA TONTINE will offset losses from the drop in CHINA TONTINE's long position.| Benchmark Electronics vs. Meiko Electronics Co | Benchmark Electronics vs. Superior Plus Corp | Benchmark Electronics vs. SIVERS SEMICONDUCTORS AB | Benchmark Electronics vs. Norsk Hydro ASA |
| CHINA TONTINE vs. REINET INVESTMENTS SCA | CHINA TONTINE vs. SLR Investment Corp | CHINA TONTINE vs. Benchmark Electronics | CHINA TONTINE vs. Postal Savings Bank |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |