Correlation Between Benchmark Electronics and Aurubis AG
Can any of the company-specific risk be diversified away by investing in both Benchmark Electronics and Aurubis AG 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 Aurubis AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benchmark Electronics and Aurubis AG, you can compare the effects of market volatilities on Benchmark Electronics and Aurubis AG 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 Aurubis AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benchmark Electronics and Aurubis AG.
Diversification Opportunities for Benchmark Electronics and Aurubis AG
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Benchmark and Aurubis is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Benchmark Electronics and Aurubis AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurubis AG 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 Aurubis AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurubis AG has no effect on the direction of Benchmark Electronics i.e., Benchmark Electronics and Aurubis AG go up and down completely randomly.
Pair Corralation between Benchmark Electronics and Aurubis AG
Assuming the 90 days horizon Benchmark Electronics is expected to under-perform the Aurubis AG. But the stock apears to be less risky and, when comparing its historical volatility, Benchmark Electronics is 1.81 times less risky than Aurubis AG. The stock trades about -0.18 of its potential returns per unit of risk. The Aurubis AG is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 7,590 in Aurubis AG on September 24, 2024 and sell it today you would earn a total of 190.00 from holding Aurubis AG or generate 2.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Benchmark Electronics vs. Aurubis AG
Performance |
Timeline |
Benchmark Electronics |
Aurubis AG |
Benchmark Electronics and Aurubis AG Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Benchmark Electronics and Aurubis AG
The main advantage of trading using opposite Benchmark Electronics and Aurubis AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benchmark Electronics position performs unexpectedly, Aurubis AG 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 Aurubis AG will offset losses from the drop in Aurubis AG's long position.Benchmark Electronics vs. MINCO SILVER | Benchmark Electronics vs. Perseus Mining Limited | Benchmark Electronics vs. NetSol Technologies | Benchmark Electronics vs. CVW CLEANTECH INC |
Aurubis AG vs. Broadcom | Aurubis AG vs. TEXAS ROADHOUSE | Aurubis AG vs. Benchmark Electronics | Aurubis AG vs. Liberty Broadband |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Stocks Directory Find actively traded stocks across global markets | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |