Correlation Between Benson Hill, and Enlightify

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

By analyzing existing cross correlation between Benson Hill, Common and Enlightify, you can compare the effects of market volatilities on Benson Hill, and Enlightify 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 Benson Hill, with a short position of Enlightify. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benson Hill, and Enlightify.

Diversification Opportunities for Benson Hill, and Enlightify

-0.03

Correlation Coefficient

Benson Hill,  Enlightify

Good diversification

The 3 months correlation between Benson and Enlightify is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Benson Hill, Common and Enlightify in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enlightify and Benson Hill, 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 Benson Hill, Common are associated (or correlated) with Enlightify. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enlightify has no effect on the direction of Benson Hill, i.e., Benson Hill, and Enlightify go up and down completely randomly.

Pair Corralation between Benson Hill, and Enlightify

Given the investment horizon of 90 days Benson Hill, Common is expected to under-perform the Enlightify. In addition to that, Benson Hill, is 2.89 times more volatile than Enlightify. It trades about -0.09 of its total potential returns per unit of risk. Enlightify is currently generating about 0.02 per unit of volatility. If you would invest  114.00  in Enlightify on December 21, 2024 and sell it today you would lose (6.00) from holding Enlightify or give up 5.26% of portfolio value over 90 days.

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

Benson Hill, Common  vs.  Enlightify

Benson Hill, Common

Risk-Adjusted Performance

Very Weak

Over the last 90 days Benson Hill, Common has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Enlightify

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Enlightify are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical and fundamental indicators, Enlightify may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Benson Hill, and Enlightify

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

The idea behind Benson Hill, Common and Enlightify 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.