Correlation Between Benchmark Bankshares and BlackRock MIT

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

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

Diversification Opportunities for Benchmark Bankshares and BlackRock MIT

0.0

Correlation Coefficient

Benchmark Bankshares  BlackRock MIT

Pay attention - limited upside

The 3 months correlation between Benchmark and BlackRock is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Benchmark Bankshares and BlackRock MIT II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock MIT II and Benchmark Bankshares 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 Bankshares are associated (or correlated) with BlackRock MIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock MIT II has no effect on the direction of Benchmark Bankshares i.e., Benchmark Bankshares and BlackRock MIT go up and down completely randomly.

Pair Corralation between Benchmark Bankshares and BlackRock MIT

If you would invest  0.00  in Benchmark Bankshares on October 25, 2024 and sell it today you would earn a total of  0.00  from holding Benchmark Bankshares or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.69%
Values	Daily Returns

Benchmark Bankshares  vs.  BlackRock MIT II

Benchmark Bankshares

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days Benchmark Bankshares has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental drivers, Benchmark Bankshares is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

BlackRock MIT II

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BlackRock MIT II has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound essential indicators, BlackRock MIT is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Benchmark Bankshares and BlackRock MIT

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

The idea behind Benchmark Bankshares and BlackRock MIT II 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.