Correlation Between Wallbox NV and Benchmark Electronics
Can any of the company-specific risk be diversified away by investing in both Wallbox NV 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 Wallbox NV and Benchmark Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wallbox NV and Benchmark Electronics, you can compare the effects of market volatilities on Wallbox NV 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 Wallbox NV with a short position of Benchmark Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wallbox NV and Benchmark Electronics.
Diversification Opportunities for Wallbox NV and Benchmark Electronics
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wallbox and Benchmark is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Wallbox NV and Benchmark Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benchmark Electronics and Wallbox NV 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 Wallbox NV 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 Wallbox NV i.e., Wallbox NV and Benchmark Electronics go up and down completely randomly.
Pair Corralation between Wallbox NV and Benchmark Electronics
Considering the 90-day investment horizon Wallbox NV is expected to under-perform the Benchmark Electronics. In addition to that, Wallbox NV is 1.97 times more volatile than Benchmark Electronics. It trades about -0.15 of its total potential returns per unit of risk. Benchmark Electronics is currently generating about 0.11 per unit of volatility. If you would invest 3,631 in Benchmark Electronics on May 28, 2025 and sell it today you would earn a total of 464.00 from holding Benchmark Electronics or generate 12.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wallbox NV vs. Benchmark Electronics
Performance |
| Timeline |
| Wallbox NV |
| Benchmark Electronics |
Wallbox NV and Benchmark Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wallbox NV and Benchmark Electronics
The main advantage of trading using opposite Wallbox NV and Benchmark Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wallbox NV 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.| Wallbox NV vs. Fabrinet | Wallbox NV vs. Kopin | Wallbox NV vs. Neonode | Wallbox NV vs. Ouster, Common Stock |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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