Correlation Between Aethlon Medical and Benchmark Electronics

Can any of the company-specific risk be diversified away by investing in both Aethlon Medical 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 Aethlon Medical and Benchmark Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aethlon Medical and Benchmark Electronics, you can compare the effects of market volatilities on Aethlon Medical 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 Aethlon Medical with a short position of Benchmark Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aethlon Medical and Benchmark Electronics.

Diversification Opportunities for Aethlon Medical and Benchmark Electronics

0.17

Correlation Coefficient

Aethlon Medical  Benchmark Electronics

Average diversification

The 3 months correlation between Aethlon and Benchmark is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Aethlon Medical and Benchmark Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benchmark Electronics and Aethlon Medical 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 Aethlon Medical 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 Aethlon Medical i.e., Aethlon Medical and Benchmark Electronics go up and down completely randomly.

Pair Corralation between Aethlon Medical and Benchmark Electronics

Given the investment horizon of 90 days Aethlon Medical is expected to generate 8.02 times more return on investment than Benchmark Electronics. However, Aethlon Medical is 8.02 times more volatile than Benchmark Electronics. It trades about 0.03 of its potential returns per unit of risk. Benchmark Electronics is currently generating about -0.02 per unit of risk. If you would invest  117.00  in Aethlon Medical on July 7, 2025 and sell it today you would lose (38.00) from holding Aethlon Medical or give up 32.48% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Aethlon Medical  vs.  Benchmark Electronics

Aethlon Medical

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Aethlon Medical are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating primary indicators, Aethlon Medical exhibited solid returns over the last few months and may actually be approaching a breakup point.

Benchmark Electronics

Risk-Adjusted Performance

Weakest

Over the last 90 days Benchmark Electronics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical indicators, Benchmark Electronics is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Aethlon Medical and Benchmark Electronics

The main advantage of trading using opposite Aethlon Medical and Benchmark Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aethlon Medical 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.

The idea behind Aethlon Medical and Benchmark Electronics 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.

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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.