Correlation Between Zebra Technologies and Benchmark Electronics
Can any of the company-specific risk be diversified away by investing in both Zebra Technologies 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 Zebra Technologies and Benchmark Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zebra Technologies and Benchmark Electronics, you can compare the effects of market volatilities on Zebra Technologies 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 Zebra Technologies with a short position of Benchmark Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zebra Technologies and Benchmark Electronics.
Diversification Opportunities for Zebra Technologies and Benchmark Electronics
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zebra and Benchmark is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Zebra Technologies and Benchmark Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benchmark Electronics and Zebra Technologies 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 Zebra Technologies 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 Zebra Technologies i.e., Zebra Technologies and Benchmark Electronics go up and down completely randomly.
Pair Corralation between Zebra Technologies and Benchmark Electronics
Given the investment horizon of 90 days Zebra Technologies is expected to generate 1.53 times less return on investment than Benchmark Electronics. But when comparing it to its historical volatility, Zebra Technologies is 1.04 times less risky than Benchmark Electronics. It trades about 0.03 of its potential returns per unit of risk. Benchmark Electronics is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,459 in Benchmark Electronics on April 30, 2025 and sell it today you would earn a total of 1,454 from holding Benchmark Electronics or generate 59.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zebra Technologies vs. Benchmark Electronics
Performance |
| Timeline |
| Zebra Technologies |
| Benchmark Electronics |
Zebra Technologies and Benchmark Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zebra Technologies and Benchmark Electronics
The main advantage of trading using opposite Zebra Technologies and Benchmark Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zebra Technologies 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.| Zebra Technologies vs. Arista Networks | Zebra Technologies vs. Ciena Corp | Zebra Technologies vs. HubSpot | Zebra Technologies vs. Lumentum Holdings |
| 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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