Correlation Between Renesas Electronics and Benchmark Electronics
Can any of the company-specific risk be diversified away by investing in both Renesas Electronics 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 Renesas Electronics and Benchmark Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Renesas Electronics and Benchmark Electronics, you can compare the effects of market volatilities on Renesas Electronics 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 Renesas Electronics with a short position of Benchmark Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Renesas Electronics and Benchmark Electronics.
Diversification Opportunities for Renesas Electronics and Benchmark Electronics
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Renesas and Benchmark is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Renesas Electronics and Benchmark Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benchmark Electronics and Renesas 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 Renesas Electronics 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 Renesas Electronics i.e., Renesas Electronics and Benchmark Electronics go up and down completely randomly.
Pair Corralation between Renesas Electronics and Benchmark Electronics
Assuming the 90 days horizon Renesas Electronics is expected to under-perform the Benchmark Electronics. In addition to that, Renesas Electronics is 1.35 times more volatile than Benchmark Electronics. It trades about 0.0 of its total potential returns per unit of risk. Benchmark Electronics is currently generating about 0.02 per unit of volatility. If you would invest 3,700 in Benchmark Electronics on August 19, 2025 and sell it today you would earn a total of 20.00 from holding Benchmark Electronics or generate 0.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Renesas Electronics vs. Benchmark Electronics
Performance |
| Timeline |
| Renesas Electronics |
| Benchmark Electronics |
Renesas Electronics and Benchmark Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Renesas Electronics and Benchmark Electronics
The main advantage of trading using opposite Renesas Electronics and Benchmark Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Renesas Electronics 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.| Renesas Electronics vs. NVIDIA | Renesas Electronics vs. Taiwan Semiconductor Manufacturing | Renesas Electronics vs. Intel | Renesas Electronics vs. BANK HANDLOWY |
| Benchmark Electronics vs. Jabil Inc | Benchmark Electronics vs. TTM Technologies | Benchmark Electronics vs. AT S Austria | Benchmark Electronics vs. Meiko Electronics Co |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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