Correlation Between Benchmark Electronics and WESANA HEALTH
Can any of the company-specific risk be diversified away by investing in both Benchmark Electronics and WESANA HEALTH 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 WESANA HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benchmark Electronics and WESANA HEALTH HOLD, you can compare the effects of market volatilities on Benchmark Electronics and WESANA HEALTH 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 WESANA HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benchmark Electronics and WESANA HEALTH.
Diversification Opportunities for Benchmark Electronics and WESANA HEALTH
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Benchmark and WESANA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Benchmark Electronics and WESANA HEALTH HOLD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WESANA HEALTH HOLD 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 WESANA HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WESANA HEALTH HOLD has no effect on the direction of Benchmark Electronics i.e., Benchmark Electronics and WESANA HEALTH go up and down completely randomly.
Pair Corralation between Benchmark Electronics and WESANA HEALTH
If you would invest 4,383 in Benchmark Electronics on October 30, 2024 and sell it today you would earn a total of 97.00 from holding Benchmark Electronics or generate 2.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Benchmark Electronics vs. WESANA HEALTH HOLD
Performance |
| Timeline |
| Benchmark Electronics |
| WESANA HEALTH HOLD |
Benchmark Electronics and WESANA HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benchmark Electronics and WESANA HEALTH
The main advantage of trading using opposite Benchmark Electronics and WESANA HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benchmark Electronics position performs unexpectedly, WESANA HEALTH 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 WESANA HEALTH will offset losses from the drop in WESANA HEALTH's long position.| Benchmark Electronics vs. Perseus Mining Limited | Benchmark Electronics vs. Kingdee International Software | Benchmark Electronics vs. Ringmetall SE | Benchmark Electronics vs. Jacquet Metal Service |
| WESANA HEALTH vs. Zoom Video Communications | WESANA HEALTH vs. AIR PRODCHEMICALS | WESANA HEALTH vs. MagnaChip Semiconductor Corp | WESANA HEALTH vs. Siamgas And Petrochemicals |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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