Correlation Between TSOGO SUN and Benchmark Electronics
Can any of the company-specific risk be diversified away by investing in both TSOGO SUN and Benchmark Electronics 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 TSOGO SUN and Benchmark Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TSOGO SUN GAMING and Benchmark Electronics, you can compare the effects of market volatilities on TSOGO SUN and Benchmark Electronics 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 TSOGO SUN with a short position of Benchmark Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of TSOGO SUN and Benchmark Electronics.
Diversification Opportunities for TSOGO SUN and Benchmark Electronics
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between TSOGO and Benchmark is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding TSOGO SUN GAMING and Benchmark Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benchmark Electronics and TSOGO SUN 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 TSOGO SUN GAMING are associated (or correlated) with Benchmark Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benchmark Electronics has no effect on the direction of TSOGO SUN i.e., TSOGO SUN and Benchmark Electronics go up and down completely randomly.
Pair Corralation between TSOGO SUN and Benchmark Electronics
Assuming the 90 days horizon TSOGO SUN GAMING is expected to under-perform the Benchmark Electronics. But the stock apears to be less risky and, when comparing its historical volatility, TSOGO SUN GAMING is 3.11 times less risky than Benchmark Electronics. The stock trades about -0.13 of its potential returns per unit of risk. The Benchmark Electronics is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 4,120 in Benchmark Electronics on August 29, 2024 and sell it today you would earn a total of 360.00 from holding Benchmark Electronics or generate 8.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TSOGO SUN GAMING vs. Benchmark Electronics
Performance |
| Timeline |
| TSOGO SUN GAMING |
| Benchmark Electronics |
TSOGO SUN and Benchmark Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TSOGO SUN and Benchmark Electronics
The main advantage of trading using opposite TSOGO SUN and Benchmark Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TSOGO SUN position performs unexpectedly, Benchmark Electronics 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 Benchmark Electronics will offset losses from the drop in Benchmark Electronics' long position.| TSOGO SUN vs. Superior Plus Corp | TSOGO SUN vs. NMI Holdings | TSOGO SUN vs. Origin Agritech | TSOGO SUN vs. SIVERS SEMICONDUCTORS AB |
| Benchmark Electronics vs. Diamyd Medical AB | Benchmark Electronics vs. Aluminum of | Benchmark Electronics vs. Merit Medical Systems | Benchmark Electronics vs. AVITA Medical |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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