Correlation Between Gruppo Mutuionline and Benchmark Electronics
Can any of the company-specific risk be diversified away by investing in both Gruppo Mutuionline 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 Gruppo Mutuionline and Benchmark Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gruppo Mutuionline SpA and Benchmark Electronics, you can compare the effects of market volatilities on Gruppo Mutuionline 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 Gruppo Mutuionline with a short position of Benchmark Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gruppo Mutuionline and Benchmark Electronics.
Diversification Opportunities for Gruppo Mutuionline and Benchmark Electronics
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gruppo and Benchmark is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Gruppo Mutuionline SpA and Benchmark Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benchmark Electronics and Gruppo Mutuionline 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 Gruppo Mutuionline SpA 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 Gruppo Mutuionline i.e., Gruppo Mutuionline and Benchmark Electronics go up and down completely randomly.
Pair Corralation between Gruppo Mutuionline and Benchmark Electronics
Assuming the 90 days trading horizon Gruppo Mutuionline SpA is expected to generate 0.72 times more return on investment than Benchmark Electronics. However, Gruppo Mutuionline SpA is 1.39 times less risky than Benchmark Electronics. It trades about 0.2 of its potential returns per unit of risk. Benchmark Electronics is currently generating about -0.05 per unit of risk. 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 |
Gruppo Mutuionline SpA vs. Benchmark Electronics
Performance |
| Timeline |
| Gruppo Mutuionline SpA |
| Benchmark Electronics |
Gruppo Mutuionline and Benchmark Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gruppo Mutuionline and Benchmark Electronics
The main advantage of trading using opposite Gruppo Mutuionline and Benchmark Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gruppo Mutuionline 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.| Gruppo Mutuionline vs. SIVERS SEMICONDUCTORS AB | Gruppo Mutuionline vs. NorAm Drilling AS | Gruppo Mutuionline vs. Volkswagen AG | Gruppo Mutuionline vs. Darden Restaurants |
| Benchmark Electronics vs. Indutrade AB | Benchmark Electronics vs. SOEDER SPORTFISKE AB | Benchmark Electronics vs. Yuexiu Transport Infrastructure | Benchmark Electronics vs. FLOW TRADERS LTD |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| 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 Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |