Correlation Between Klckner Co and Benchmark Electronics
Can any of the company-specific risk be diversified away by investing in both Klckner Co 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 Klckner Co and Benchmark Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Klckner Co SE and Benchmark Electronics, you can compare the effects of market volatilities on Klckner Co 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 Klckner Co with a short position of Benchmark Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Klckner Co and Benchmark Electronics.
Diversification Opportunities for Klckner Co and Benchmark Electronics
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Klckner and Benchmark is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Klckner Co SE and Benchmark Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benchmark Electronics and Klckner Co 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 Klckner Co SE 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 Klckner Co i.e., Klckner Co and Benchmark Electronics go up and down completely randomly.
Pair Corralation between Klckner Co and Benchmark Electronics
Assuming the 90 days horizon Klckner Co SE is expected to generate 1.13 times more return on investment than Benchmark Electronics. However, Klckner Co is 1.13 times more volatile than Benchmark Electronics. It trades about 0.21 of its potential returns per unit of risk. Benchmark Electronics is currently generating about -0.11 per unit of risk. If you would invest 445.00 in Klckner Co SE on September 14, 2024 and sell it today you would earn a total of 35.00 from holding Klckner Co SE or generate 7.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Klckner Co SE vs. Benchmark Electronics
Performance |
| Timeline |
| Klckner Co SE |
| Benchmark Electronics |
Klckner Co and Benchmark Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Klckner Co and Benchmark Electronics
The main advantage of trading using opposite Klckner Co and Benchmark Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Klckner Co 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.| Klckner Co vs. Benchmark Electronics | Klckner Co vs. Global Ship Lease | Klckner Co vs. UET United Electronic | Klckner Co vs. ARROW ELECTRONICS |
| Benchmark Electronics vs. KIMBALL ELECTRONICS | Benchmark Electronics vs. ELECTRONIC ARTS | Benchmark Electronics vs. Arrow Electronics | Benchmark Electronics vs. DISTRICT METALS |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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