Correlation Between Benchmark Botanics and 4Cable Tv

Can any of the company-specific risk be diversified away by investing in both Benchmark Botanics and 4Cable Tv 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 Botanics and 4Cable Tv into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Benchmark Botanics and 4Cable Tv Internatio, you can compare the effects of market volatilities on Benchmark Botanics and 4Cable Tv 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 Botanics with a short position of 4Cable Tv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benchmark Botanics and 4Cable Tv.

Diversification Opportunities for Benchmark Botanics and 4Cable Tv

-0.32

Correlation Coefficient

Benchmark Botanics  4Cable Tv

Very good diversification

The 3 months correlation between Benchmark and 4Cable is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Benchmark Botanics and 4Cable Tv Internatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 4Cable Tv Internatio and Benchmark Botanics 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 Botanics are associated (or correlated) with 4Cable Tv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 4Cable Tv Internatio has no effect on the direction of Benchmark Botanics i.e., Benchmark Botanics and 4Cable Tv go up and down completely randomly.

Pair Corralation between Benchmark Botanics and 4Cable Tv

Assuming the 90 days horizon Benchmark Botanics is expected to under-perform the 4Cable Tv. But the pink sheet apears to be less risky and, when comparing its historical volatility, Benchmark Botanics is 2.49 times less risky than 4Cable Tv. The pink sheet trades about -0.13 of its potential returns per unit of risk. The 4Cable Tv Internatio is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  0.03  in 4Cable Tv Internatio on December 29, 2024 and sell it today you would earn a total of  0.01  from holding 4Cable Tv Internatio or generate 33.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Benchmark Botanics  vs.  4Cable Tv Internatio

Benchmark Botanics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Benchmark Botanics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's forward-looking signals remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

4Cable Tv Internatio

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in 4Cable Tv Internatio are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, 4Cable Tv showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Benchmark Botanics and 4Cable Tv

The main advantage of trading using opposite Benchmark Botanics and 4Cable Tv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benchmark Botanics position performs unexpectedly, 4Cable Tv 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 4Cable Tv will offset losses from the drop in 4Cable Tv's long position.

The idea behind Benchmark Botanics and 4Cable Tv Internatio 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.