Correlation Between Benchmark Electronics and GAMES OPERATORS

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Can any of the company-specific risk be diversified away by investing in both Benchmark Electronics and GAMES OPERATORS 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 GAMES OPERATORS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benchmark Electronics and GAMES OPERATORS SA, you can compare the effects of market volatilities on Benchmark Electronics and GAMES OPERATORS 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 GAMES OPERATORS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benchmark Electronics and GAMES OPERATORS.

Diversification Opportunities for Benchmark Electronics and GAMES OPERATORS

0.49
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Benchmark and GAMES is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Benchmark Electronics and GAMES OPERATORS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMES OPERATORS SA 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 GAMES OPERATORS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMES OPERATORS SA has no effect on the direction of Benchmark Electronics i.e., Benchmark Electronics and GAMES OPERATORS go up and down completely randomly.

Pair Corralation between Benchmark Electronics and GAMES OPERATORS

Assuming the 90 days horizon Benchmark Electronics is expected to generate 0.85 times more return on investment than GAMES OPERATORS. However, Benchmark Electronics is 1.18 times less risky than GAMES OPERATORS. It trades about 0.1 of its potential returns per unit of risk. GAMES OPERATORS SA is currently generating about 0.04 per unit of risk. If you would invest  2,987  in Benchmark Electronics on April 20, 2025 and sell it today you would earn a total of  373.00  from holding Benchmark Electronics or generate 12.49% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Benchmark Electronics  vs.  GAMES OPERATORS SA

 Performance 
       Timeline  
Benchmark Electronics 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Benchmark Electronics are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Benchmark Electronics reported solid returns over the last few months and may actually be approaching a breakup point.
GAMES OPERATORS SA 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in GAMES OPERATORS SA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, GAMES OPERATORS is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Benchmark Electronics and GAMES OPERATORS Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Benchmark Electronics and GAMES OPERATORS

The main advantage of trading using opposite Benchmark Electronics and GAMES OPERATORS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benchmark Electronics position performs unexpectedly, GAMES OPERATORS 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 GAMES OPERATORS will offset losses from the drop in GAMES OPERATORS's long position.
The idea behind Benchmark Electronics and GAMES OPERATORS SA 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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

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