Correlation Between Benefytt Technologies and US GoldMining

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

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

Diversification Opportunities for Benefytt Technologies and US GoldMining

0.0

Correlation Coefficient

Benefytt Technologies  US GoldMining

Pay attention - limited upside

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

Pair Corralation between Benefytt Technologies and US GoldMining

If you would invest (100.00) in Benefytt Technologies on February 7, 2024 and sell it today you would earn a total of  100.00  from holding Benefytt Technologies or generate -100.0% return on investment over 90 days.

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

Benefytt Technologies  vs.  US GoldMining Common

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 current stock price agitation, may contribute to short-term losses for the retail investors.

US GoldMining Common

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in US GoldMining Common are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy technical and fundamental indicators, US GoldMining is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Benefytt Technologies and US GoldMining

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

The idea behind Benefytt Technologies and US GoldMining Common 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.