Correlation Between Benchmark Electronics and Ryman Healthcare

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

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

Diversification Opportunities for Benchmark Electronics and Ryman Healthcare

-0.1

Correlation Coefficient

Benchmark Electronics  Ryman Healthcare

Good diversification

The 3 months correlation between Benchmark and Ryman is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Benchmark Electronics and Ryman Healthcare Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ryman Healthcare 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 Ryman Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ryman Healthcare has no effect on the direction of Benchmark Electronics i.e., Benchmark Electronics and Ryman Healthcare go up and down completely randomly.

Pair Corralation between Benchmark Electronics and Ryman Healthcare

Assuming the 90 days horizon Benchmark Electronics is expected to generate 2.0 times less return on investment than Ryman Healthcare. But when comparing it to its historical volatility, Benchmark Electronics is 1.76 times less risky than Ryman Healthcare. It trades about 0.03 of its potential returns per unit of risk. Ryman Healthcare Limited is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  120.00  in Ryman Healthcare Limited on April 25, 2025 and sell it today you would earn a total of  4.00  from holding Ryman Healthcare Limited or generate 3.33% return on investment over 90 days.

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

Benchmark Electronics  vs.  Ryman Healthcare Limited

Benchmark Electronics

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Benchmark Electronics are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Benchmark Electronics is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Ryman Healthcare

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ryman Healthcare Limited are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Ryman Healthcare may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Benchmark Electronics and Ryman Healthcare

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

The idea behind Benchmark Electronics and Ryman Healthcare Limited 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.