Correlation Between Plexus Corp and Benchmark Electronics
Can any of the company-specific risk be diversified away by investing in both Plexus Corp 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 Plexus Corp and Benchmark Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plexus Corp and Benchmark Electronics, you can compare the effects of market volatilities on Plexus Corp 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 Plexus Corp with a short position of Benchmark Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plexus Corp and Benchmark Electronics.
Diversification Opportunities for Plexus Corp and Benchmark Electronics
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Plexus and Benchmark is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Plexus Corp and Benchmark Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benchmark Electronics and Plexus Corp 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 Plexus Corp 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 Plexus Corp i.e., Plexus Corp and Benchmark Electronics go up and down completely randomly.
Pair Corralation between Plexus Corp and Benchmark Electronics
Given the investment horizon of 90 days Plexus Corp is expected to generate 1.5 times less return on investment than Benchmark Electronics. In addition to that, Plexus Corp is 1.15 times more volatile than Benchmark Electronics. It trades about 0.06 of its total potential returns per unit of risk. Benchmark Electronics is currently generating about 0.1 per unit of volatility. If you would invest 3,629 in Benchmark Electronics on June 1, 2025 and sell it today you would earn a total of 430.00 from holding Benchmark Electronics or generate 11.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Plexus Corp vs. Benchmark Electronics
Performance |
| Timeline |
| Plexus Corp |
| Benchmark Electronics |
Plexus Corp and Benchmark Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plexus Corp and Benchmark Electronics
The main advantage of trading using opposite Plexus Corp and Benchmark Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plexus Corp 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.| Plexus Corp vs. Celestica | Plexus Corp vs. Benchmark Electronics | Plexus Corp vs. Flex | Plexus Corp vs. Jabil Circuit |
| Benchmark Electronics vs. Sanmina | Benchmark Electronics vs. Methode Electronics | Benchmark Electronics vs. OSI Systems | Benchmark Electronics vs. Celestica |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |