Correlation Between Schweizer Electronic and Benchmark Electronics
Can any of the company-specific risk be diversified away by investing in both Schweizer Electronic 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 Schweizer Electronic and Benchmark Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schweizer Electronic AG and Benchmark Electronics, you can compare the effects of market volatilities on Schweizer Electronic 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 Schweizer Electronic with a short position of Benchmark Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schweizer Electronic and Benchmark Electronics.
Diversification Opportunities for Schweizer Electronic and Benchmark Electronics
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Schweizer and Benchmark is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Schweizer Electronic AG and Benchmark Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benchmark Electronics and Schweizer Electronic 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 Schweizer Electronic AG 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 Schweizer Electronic i.e., Schweizer Electronic and Benchmark Electronics go up and down completely randomly.
Pair Corralation between Schweizer Electronic and Benchmark Electronics
Assuming the 90 days horizon Schweizer Electronic is expected to generate 102.97 times less return on investment than Benchmark Electronics. In addition to that, Schweizer Electronic is 1.96 times more volatile than Benchmark Electronics. It trades about 0.0 of its total potential returns per unit of risk. Benchmark Electronics is currently generating about 0.2 per unit of volatility. If you would invest 4,383 in Benchmark Electronics on October 20, 2024 and sell it today you would earn a total of 257.00 from holding Benchmark Electronics or generate 5.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Schweizer Electronic AG vs. Benchmark Electronics
Performance |
| Timeline |
| Schweizer Electronic |
| Benchmark Electronics |
Schweizer Electronic and Benchmark Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schweizer Electronic and Benchmark Electronics
The main advantage of trading using opposite Schweizer Electronic and Benchmark Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schweizer Electronic 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.| Schweizer Electronic vs. KINGBOARD CHEMICAL | Schweizer Electronic vs. Renesas Electronics | Schweizer Electronic vs. SEKISUI CHEMICAL | Schweizer Electronic vs. Silicon Motion Technology |
| Benchmark Electronics vs. INTERCONT HOTELS | Benchmark Electronics vs. Air Lease | Benchmark Electronics vs. Sixt Leasing SE | Benchmark Electronics vs. PPHE HOTEL GROUP |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |