Correlation Between Benefytt Technologies and Frontline

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

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

Diversification Opportunities for Benefytt Technologies and Frontline

0.0

Correlation Coefficient

Benefytt Technologies  Frontline

Pay attention - limited upside

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

Pair Corralation between Benefytt Technologies and Frontline

If you would invest  705.00  in Frontline on January 25, 2024 and sell it today you would earn a total of  1,636  from holding Frontline or generate 232.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Benefytt Technologies  vs.  Frontline

Benefytt Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Benefytt Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward indicators, Benefytt Technologies is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Frontline

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Frontline are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Frontline may actually be approaching a critical reversion point that can send shares even higher in May 2024.

Pair Trading with Benefytt Technologies and Frontline

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

The idea behind Benefytt Technologies and Frontline 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..