Correlation Between Benchmark Electronics and MAG SILVER
Can any of the company-specific risk be diversified away by investing in both Benchmark Electronics and MAG SILVER 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 MAG SILVER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benchmark Electronics and MAG SILVER, you can compare the effects of market volatilities on Benchmark Electronics and MAG SILVER 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 MAG SILVER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benchmark Electronics and MAG SILVER.
Diversification Opportunities for Benchmark Electronics and MAG SILVER
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Benchmark and MAG is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Benchmark Electronics and MAG SILVER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAG SILVER 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 MAG SILVER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAG SILVER has no effect on the direction of Benchmark Electronics i.e., Benchmark Electronics and MAG SILVER go up and down completely randomly.
Pair Corralation between Benchmark Electronics and MAG SILVER
Assuming the 90 days horizon Benchmark Electronics is expected to generate 0.92 times more return on investment than MAG SILVER. However, Benchmark Electronics is 1.09 times less risky than MAG SILVER. It trades about 0.09 of its potential returns per unit of risk. MAG SILVER is currently generating about 0.04 per unit of risk. If you would invest 2,191 in Benchmark Electronics on October 16, 2024 and sell it today you would earn a total of 2,269 from holding Benchmark Electronics or generate 103.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Benchmark Electronics vs. MAG SILVER
Performance |
| Timeline |
| Benchmark Electronics |
| MAG SILVER |
Benchmark Electronics and MAG SILVER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benchmark Electronics and MAG SILVER
The main advantage of trading using opposite Benchmark Electronics and MAG SILVER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benchmark Electronics position performs unexpectedly, MAG SILVER 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 MAG SILVER will offset losses from the drop in MAG SILVER's long position.| Benchmark Electronics vs. Easy Software AG | Benchmark Electronics vs. Constellation Software | Benchmark Electronics vs. CanSino Biologics | Benchmark Electronics vs. YATRA ONLINE DL 0001 |
| MAG SILVER vs. Goodyear Tire Rubber | MAG SILVER vs. Benchmark Electronics | MAG SILVER vs. Nanjing Panda Electronics | MAG SILVER vs. Vulcan Materials |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |