Correlation Between Benchmark Electronics and Gruppo Mutuionline
Can any of the company-specific risk be diversified away by investing in both Benchmark Electronics and Gruppo Mutuionline 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 Gruppo Mutuionline into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benchmark Electronics and Gruppo Mutuionline SpA, you can compare the effects of market volatilities on Benchmark Electronics and Gruppo Mutuionline 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 Gruppo Mutuionline. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benchmark Electronics and Gruppo Mutuionline.
Diversification Opportunities for Benchmark Electronics and Gruppo Mutuionline
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Benchmark and Gruppo is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Benchmark Electronics and Gruppo Mutuionline SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gruppo Mutuionline SpA 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 Gruppo Mutuionline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gruppo Mutuionline SpA has no effect on the direction of Benchmark Electronics i.e., Benchmark Electronics and Gruppo Mutuionline go up and down completely randomly.
Pair Corralation between Benchmark Electronics and Gruppo Mutuionline
Assuming the 90 days horizon Benchmark Electronics is expected to under-perform the Gruppo Mutuionline. In addition to that, Benchmark Electronics is 1.39 times more volatile than Gruppo Mutuionline SpA. It trades about -0.05 of its total potential returns per unit of risk. Gruppo Mutuionline SpA is currently generating about 0.2 per unit of volatility. If you would invest 3,555 in Gruppo Mutuionline SpA on November 3, 2024 and sell it today you would earn a total of 245.00 from holding Gruppo Mutuionline SpA or generate 6.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Benchmark Electronics vs. Gruppo Mutuionline SpA
Performance |
| Timeline |
| Benchmark Electronics |
| Gruppo Mutuionline SpA |
Benchmark Electronics and Gruppo Mutuionline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benchmark Electronics and Gruppo Mutuionline
The main advantage of trading using opposite Benchmark Electronics and Gruppo Mutuionline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benchmark Electronics position performs unexpectedly, Gruppo Mutuionline 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 Gruppo Mutuionline will offset losses from the drop in Gruppo Mutuionline's long position.| Benchmark Electronics vs. Indutrade AB | Benchmark Electronics vs. SOEDER SPORTFISKE AB | Benchmark Electronics vs. Yuexiu Transport Infrastructure | Benchmark Electronics vs. FLOW TRADERS LTD |
| Gruppo Mutuionline vs. SIVERS SEMICONDUCTORS AB | Gruppo Mutuionline vs. NorAm Drilling AS | Gruppo Mutuionline vs. Volkswagen AG | Gruppo Mutuionline vs. Darden Restaurants |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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