Correlation Between Strix Group and Benchmark Electronics
Can any of the company-specific risk be diversified away by investing in both Strix Group and Benchmark Electronics 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 Strix Group and Benchmark Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strix Group Plc and Benchmark Electronics, you can compare the effects of market volatilities on Strix Group and Benchmark Electronics 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 Strix Group with a short position of Benchmark Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strix Group and Benchmark Electronics.
Diversification Opportunities for Strix Group and Benchmark Electronics
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Strix and Benchmark is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Strix Group Plc and Benchmark Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benchmark Electronics and Strix Group 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 Strix Group Plc are associated (or correlated) with Benchmark Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benchmark Electronics has no effect on the direction of Strix Group i.e., Strix Group and Benchmark Electronics go up and down completely randomly.
Pair Corralation between Strix Group and Benchmark Electronics
Assuming the 90 days horizon Strix Group is expected to generate 1.5 times less return on investment than Benchmark Electronics. In addition to that, Strix Group is 1.44 times more volatile than Benchmark Electronics. It trades about 0.01 of its total potential returns per unit of risk. Benchmark Electronics is currently generating about 0.03 per unit of volatility. If you would invest 3,306 in Benchmark Electronics on April 25, 2025 and sell it today you would earn a total of 74.00 from holding Benchmark Electronics or generate 2.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Strix Group Plc vs. Benchmark Electronics
Performance |
Timeline |
Strix Group Plc |
Benchmark Electronics |
Strix Group and Benchmark Electronics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Strix Group and Benchmark Electronics
The main advantage of trading using opposite Strix Group and Benchmark Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strix Group position performs unexpectedly, Benchmark Electronics 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 Benchmark Electronics will offset losses from the drop in Benchmark Electronics' long position.Strix Group vs. Cal Maine Foods | Strix Group vs. HF SINCLAIR P | Strix Group vs. CHINA TONTINE WINES | Strix Group vs. NAKED WINES PLC |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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