Correlation Between Bet At and Benchmark Electronics

Can any of the company-specific risk be diversified away by investing in both Bet At 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 Bet At and Benchmark Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between bet at home AG and Benchmark Electronics, you can compare the effects of market volatilities on Bet At 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 Bet At with a short position of Benchmark Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bet At and Benchmark Electronics.

Diversification Opportunities for Bet At and Benchmark Electronics

-0.72

Correlation Coefficient

Bet At  Benchmark Electronics

Pay attention - limited upside

The 3 months correlation between Bet and Benchmark is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding bet at home AG and Benchmark Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benchmark Electronics and Bet At 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 bet at home 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 Bet At i.e., Bet At and Benchmark Electronics go up and down completely randomly.

Pair Corralation between Bet At and Benchmark Electronics

Assuming the 90 days trading horizon bet at home AG is expected to generate 0.85 times more return on investment than Benchmark Electronics. However, bet at home AG is 1.18 times less risky than Benchmark Electronics. It trades about -0.13 of its potential returns per unit of risk. Benchmark Electronics is currently generating about -0.14 per unit of risk. If you would invest  251.00  in bet at home AG on October 6, 2024 and sell it today you would lose (9.00) from holding bet at home AG or give up 3.59% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

bet at home AG  vs.  Benchmark Electronics

bet at home

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days bet at home AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Benchmark Electronics

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Benchmark Electronics are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Benchmark Electronics may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Bet At and Benchmark Electronics

The main advantage of trading using opposite Bet At and Benchmark Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bet At 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.

The idea behind bet at home AG and Benchmark Electronics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..