Correlation Between Benson Hill, and E I

Can any of the company-specific risk be diversified away by investing in both Benson Hill, and E I 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 Benson Hill, and E I into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Benson Hill, Common and E I du, you can compare the effects of market volatilities on Benson Hill, and E I 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 Benson Hill, with a short position of E I. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benson Hill, and E I.

Diversification Opportunities for Benson Hill, and E I

0.71

Correlation Coefficient

Benson Hill,  E I

Poor diversification

The 3 months correlation between Benson and CTA-PA is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Benson Hill, Common and E I du in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E I du and Benson Hill, 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 Benson Hill, Common are associated (or correlated) with E I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E I du has no effect on the direction of Benson Hill, i.e., Benson Hill, and E I go up and down completely randomly.

Pair Corralation between Benson Hill, and E I

Given the investment horizon of 90 days Benson Hill, Common is expected to under-perform the E I. In addition to that, Benson Hill, is 3.19 times more volatile than E I du. It trades about -0.06 of its total potential returns per unit of risk. E I du is currently generating about 0.01 per unit of volatility. If you would invest  5,595  in E I du on September 26, 2024 and sell it today you would earn a total of  15.00  from holding E I du or generate 0.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.99%
Values	Daily Returns

Benson Hill, Common  vs.  E I du

Benson Hill, Common

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Benson Hill, Common has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

E I du

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days E I du has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Preferred Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Benson Hill, and E I

The main advantage of trading using opposite Benson Hill, and E I positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benson Hill, position performs unexpectedly, E I 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 E I will offset losses from the drop in E I's long position.

The idea behind Benson Hill, Common and E I du pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.