Correlation Between Benchmark Electronics and Penguin Solutions,
Can any of the company-specific risk be diversified away by investing in both Benchmark Electronics and Penguin Solutions, 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 Penguin Solutions, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benchmark Electronics and Penguin Solutions,, you can compare the effects of market volatilities on Benchmark Electronics and Penguin Solutions, 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 Penguin Solutions,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benchmark Electronics and Penguin Solutions,.
Diversification Opportunities for Benchmark Electronics and Penguin Solutions,
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Benchmark and Penguin is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Benchmark Electronics and Penguin Solutions, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penguin Solutions, 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 Penguin Solutions,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penguin Solutions, has no effect on the direction of Benchmark Electronics i.e., Benchmark Electronics and Penguin Solutions, go up and down completely randomly.
Pair Corralation between Benchmark Electronics and Penguin Solutions,
Considering the 90-day investment horizon Benchmark Electronics is expected to generate 0.69 times more return on investment than Penguin Solutions,. However, Benchmark Electronics is 1.45 times less risky than Penguin Solutions,. It trades about 0.07 of its potential returns per unit of risk. Penguin Solutions, is currently generating about -0.04 per unit of risk. If you would invest 3,896 in Benchmark Electronics on July 28, 2025 and sell it today you would earn a total of 348.00 from holding Benchmark Electronics or generate 8.93% 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. Penguin Solutions,
Performance |
| Timeline |
| Benchmark Electronics |
| Penguin Solutions, |
Benchmark Electronics and Penguin Solutions, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benchmark Electronics and Penguin Solutions,
The main advantage of trading using opposite Benchmark Electronics and Penguin Solutions, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benchmark Electronics position performs unexpectedly, Penguin Solutions, 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 Penguin Solutions, will offset losses from the drop in Penguin Solutions,'s long position.| Benchmark Electronics vs. Digi International | Benchmark Electronics vs. Penguin Solutions, | Benchmark Electronics vs. CTS Corporation | Benchmark Electronics vs. Rogers |
| Penguin Solutions, vs. CTS Corporation | Penguin Solutions, vs. Daktronics | Penguin Solutions, vs. Blacksky Technology | Penguin Solutions, vs. Benchmark Electronics |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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