Correlation Between Jacquet Metal and Benchmark Electronics
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal 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 Jacquet Metal and Benchmark Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jacquet Metal Service and Benchmark Electronics, you can compare the effects of market volatilities on Jacquet Metal 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 Jacquet Metal with a short position of Benchmark Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Benchmark Electronics.
Diversification Opportunities for Jacquet Metal and Benchmark Electronics
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jacquet and Benchmark is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Benchmark Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benchmark Electronics and Jacquet Metal 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 Jacquet Metal Service 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 Jacquet Metal i.e., Jacquet Metal and Benchmark Electronics go up and down completely randomly.
Pair Corralation between Jacquet Metal and Benchmark Electronics
Assuming the 90 days horizon Jacquet Metal Service is expected to under-perform the Benchmark Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Jacquet Metal Service is 2.49 times less risky than Benchmark Electronics. The stock trades about -0.1 of its potential returns per unit of risk. The Benchmark Electronics is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 4,100 in Benchmark Electronics on September 1, 2024 and sell it today you would earn a total of 420.00 from holding Benchmark Electronics or generate 10.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. Benchmark Electronics
Performance |
| Timeline |
| Jacquet Metal Service |
| Benchmark Electronics |
Jacquet Metal and Benchmark Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Benchmark Electronics
The main advantage of trading using opposite Jacquet Metal and Benchmark Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal 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.| Jacquet Metal vs. BORR DRILLING NEW | Jacquet Metal vs. Carsales | Jacquet Metal vs. Gruppo Mutuionline SpA | Jacquet Metal vs. GungHo Online Entertainment |
| Benchmark Electronics vs. METHODE ELECTRONICS | Benchmark Electronics vs. Soken Chemical Engineering | Benchmark Electronics vs. KIMBALL ELECTRONICS | Benchmark Electronics vs. Quaker Chemical |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |