Correlation Between Shenandoah Telecommunicatio and Benchmark Electronics
Can any of the company-specific risk be diversified away by investing in both Shenandoah Telecommunicatio 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 Shenandoah Telecommunicatio and Benchmark Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shenandoah Telecommunications and Benchmark Electronics, you can compare the effects of market volatilities on Shenandoah Telecommunicatio 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 Shenandoah Telecommunicatio with a short position of Benchmark Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenandoah Telecommunicatio and Benchmark Electronics.
Diversification Opportunities for Shenandoah Telecommunicatio and Benchmark Electronics
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shenandoah and Benchmark is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Shenandoah Telecommunications and Benchmark Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benchmark Electronics and Shenandoah Telecommunicatio 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 Shenandoah Telecommunications 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 Shenandoah Telecommunicatio i.e., Shenandoah Telecommunicatio and Benchmark Electronics go up and down completely randomly.
Pair Corralation between Shenandoah Telecommunicatio and Benchmark Electronics
Assuming the 90 days horizon Shenandoah Telecommunications is expected to under-perform the Benchmark Electronics. In addition to that, Shenandoah Telecommunicatio is 1.02 times more volatile than Benchmark Electronics. It trades about -0.34 of its total potential returns per unit of risk. Benchmark Electronics is currently generating about 0.08 per unit of volatility. If you would invest 4,383 in Benchmark Electronics on October 30, 2024 and sell it today you would earn a total of 97.00 from holding Benchmark Electronics or generate 2.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenandoah Telecommunications vs. Benchmark Electronics
Performance |
| Timeline |
| Shenandoah Telecommunicatio |
| Benchmark Electronics |
Shenandoah Telecommunicatio and Benchmark Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenandoah Telecommunicatio and Benchmark Electronics
The main advantage of trading using opposite Shenandoah Telecommunicatio and Benchmark Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenandoah Telecommunicatio 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.| Shenandoah Telecommunicatio vs. AEON STORES | Shenandoah Telecommunicatio vs. UNIQA INSURANCE GR | Shenandoah Telecommunicatio vs. BJs Restaurants | Shenandoah Telecommunicatio vs. BANK OF CHINA |
| Benchmark Electronics vs. Perseus Mining Limited | Benchmark Electronics vs. Kingdee International Software | Benchmark Electronics vs. Ringmetall SE | Benchmark Electronics vs. Jacquet Metal Service |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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