Correlation Between Super Micro and Benchmark Electronics
Can any of the company-specific risk be diversified away by investing in both Super Micro 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 Super Micro and Benchmark Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Super Micro Computer and Benchmark Electronics, you can compare the effects of market volatilities on Super Micro 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 Super Micro with a short position of Benchmark Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Micro and Benchmark Electronics.
Diversification Opportunities for Super Micro and Benchmark Electronics
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Super and Benchmark is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Super Micro Computer and Benchmark Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benchmark Electronics and Super Micro 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 Super Micro Computer 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 Super Micro i.e., Super Micro and Benchmark Electronics go up and down completely randomly.
Pair Corralation between Super Micro and Benchmark Electronics
Given the investment horizon of 90 days Super Micro Computer is expected to generate 2.28 times more return on investment than Benchmark Electronics. However, Super Micro is 2.28 times more volatile than Benchmark Electronics. It trades about 0.05 of its potential returns per unit of risk. Benchmark Electronics is currently generating about 0.11 per unit of risk. If you would invest 4,115 in Super Micro Computer on May 29, 2025 and sell it today you would earn a total of 361.00 from holding Super Micro Computer or generate 8.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Super Micro Computer vs. Benchmark Electronics
Performance |
| Timeline |
| Super Micro Computer |
| Benchmark Electronics |
Super Micro and Benchmark Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Super Micro and Benchmark Electronics
The main advantage of trading using opposite Super Micro and Benchmark Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Super Micro 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.| Super Micro vs. IONQ Inc | Super Micro vs. Arista Networks | Super Micro vs. Cricut Inc | Super Micro vs. D Wave Quantum |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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