Correlation Between Benchmark Electronics and KYB PORATION

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

By analyzing existing cross correlation between Benchmark Electronics and KYB PORATION, you can compare the effects of market volatilities on Benchmark Electronics and KYB PORATION 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 KYB PORATION. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benchmark Electronics and KYB PORATION.

Diversification Opportunities for Benchmark Electronics and KYB PORATION

0.0

Correlation Coefficient

Benchmark Electronics  KYB PORATION

Pay attention - limited upside

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

Pair Corralation between Benchmark Electronics and KYB PORATION

If you would invest  0.00  in KYB PORATION on December 21, 2024 and sell it today you would earn a total of  0.00  from holding KYB PORATION 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 Electronics  vs.  KYB PORATION

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. Despite uncertain performance in the last few months, the Stock's basic indicators 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.

KYB PORATION

Risk-Adjusted Performance

Very Weak

Over the last 90 days KYB PORATION has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, KYB PORATION is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Benchmark Electronics and KYB PORATION

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

The idea behind Benchmark Electronics and KYB PORATION 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.