Correlation Between Benchmark Electronics and TRAILBREAKER RESOURCES
Can any of the company-specific risk be diversified away by investing in both Benchmark Electronics and TRAILBREAKER RESOURCES 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 TRAILBREAKER RESOURCES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benchmark Electronics and TRAILBREAKER RESOURCES, you can compare the effects of market volatilities on Benchmark Electronics and TRAILBREAKER RESOURCES 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 TRAILBREAKER RESOURCES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benchmark Electronics and TRAILBREAKER RESOURCES.
Diversification Opportunities for Benchmark Electronics and TRAILBREAKER RESOURCES
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Benchmark and TRAILBREAKER is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Benchmark Electronics and TRAILBREAKER RESOURCES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRAILBREAKER RESOURCES 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 TRAILBREAKER RESOURCES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRAILBREAKER RESOURCES has no effect on the direction of Benchmark Electronics i.e., Benchmark Electronics and TRAILBREAKER RESOURCES go up and down completely randomly.
Pair Corralation between Benchmark Electronics and TRAILBREAKER RESOURCES
Assuming the 90 days horizon Benchmark Electronics is expected to generate 0.41 times more return on investment than TRAILBREAKER RESOURCES. However, Benchmark Electronics is 2.46 times less risky than TRAILBREAKER RESOURCES. It trades about 0.06 of its potential returns per unit of risk. TRAILBREAKER RESOURCES is currently generating about -0.06 per unit of risk. If you would invest 3,747 in Benchmark Electronics on September 3, 2024 and sell it today you would earn a total of 753.00 from holding Benchmark Electronics or generate 20.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Benchmark Electronics vs. TRAILBREAKER RESOURCES
Performance |
| Timeline |
| Benchmark Electronics |
| TRAILBREAKER RESOURCES |
Benchmark Electronics and TRAILBREAKER RESOURCES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benchmark Electronics and TRAILBREAKER RESOURCES
The main advantage of trading using opposite Benchmark Electronics and TRAILBREAKER RESOURCES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benchmark Electronics position performs unexpectedly, TRAILBREAKER RESOURCES 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 TRAILBREAKER RESOURCES will offset losses from the drop in TRAILBREAKER RESOURCES's long position.| Benchmark Electronics vs. GALENA MINING LTD | Benchmark Electronics vs. ATOSS SOFTWARE | Benchmark Electronics vs. Unity Software | Benchmark Electronics vs. Alfa Financial Software |
| TRAILBREAKER RESOURCES vs. ARISTOCRAT LEISURE | TRAILBREAKER RESOURCES vs. LG Display Co | TRAILBREAKER RESOURCES vs. TITANIUM TRANSPORTGROUP | TRAILBREAKER RESOURCES vs. Kaufman Broad SA |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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