Correlation Between Benchmark Electronics and Bitmine Immersion

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

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

Diversification Opportunities for Benchmark Electronics and Bitmine Immersion

0.29

Correlation Coefficient

Benchmark Electronics  Bitmine Immersion

Modest diversification

The 3 months correlation between Benchmark and Bitmine is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Benchmark Electronics and Bitmine Immersion Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitmine Immersion and Benchmark Electronics 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 Benchmark Electronics are associated (or correlated) with Bitmine Immersion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitmine Immersion has no effect on the direction of Benchmark Electronics i.e., Benchmark Electronics and Bitmine Immersion go up and down completely randomly.

Pair Corralation between Benchmark Electronics and Bitmine Immersion

Considering the 90-day investment horizon Benchmark Electronics is expected to under-perform the Bitmine Immersion. But the stock apears to be less risky and, when comparing its historical volatility, Benchmark Electronics is 5.03 times less risky than Bitmine Immersion. The stock trades about -0.16 of its potential returns per unit of risk. The Bitmine Immersion Technologies is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  35.00  in Bitmine Immersion Technologies on December 3, 2024 and sell it today you would lose (7.00) from holding Bitmine Immersion Technologies or give up 20.0% of portfolio value over 90 days.

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

Benchmark Electronics  vs.  Bitmine Immersion Technologies

Benchmark Electronics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Benchmark Electronics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Bitmine Immersion

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bitmine Immersion Technologies are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Bitmine Immersion reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Benchmark Electronics and Bitmine Immersion

The main advantage of trading using opposite Benchmark Electronics and Bitmine Immersion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benchmark Electronics position performs unexpectedly, Bitmine Immersion 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 Bitmine Immersion will offset losses from the drop in Bitmine Immersion's long position.

The idea behind Benchmark Electronics and Bitmine Immersion Technologies 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.

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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..