Correlation Between Benchmark Electronics and Climb Global

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Benchmark Electronics and Climb Global 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 Benchmark Electronics and Climb Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benchmark Electronics and Climb Global Solutions, you can compare the effects of market volatilities on Benchmark Electronics and Climb Global 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 Benchmark Electronics with a short position of Climb Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benchmark Electronics and Climb Global.

Diversification Opportunities for Benchmark Electronics and Climb Global

0.22
  Correlation Coefficient

Modest diversification

The 3 months correlation between Benchmark and Climb is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Benchmark Electronics and Climb Global Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Climb Global Solutions and Benchmark Electronics 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 Benchmark Electronics are associated (or correlated) with Climb Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Climb Global Solutions has no effect on the direction of Benchmark Electronics i.e., Benchmark Electronics and Climb Global go up and down completely randomly.

Pair Corralation between Benchmark Electronics and Climb Global

Considering the 90-day investment horizon Benchmark Electronics is expected to generate 1.19 times more return on investment than Climb Global. However, Benchmark Electronics is 1.19 times more volatile than Climb Global Solutions. It trades about 0.05 of its potential returns per unit of risk. Climb Global Solutions is currently generating about -0.06 per unit of risk. If you would invest  3,753  in Benchmark Electronics on April 24, 2025 and sell it today you would earn a total of  206.00  from holding Benchmark Electronics or generate 5.49% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Benchmark Electronics  vs.  Climb Global Solutions

 Performance 
       Timeline  
Benchmark Electronics 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Benchmark Electronics are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical indicators, Benchmark Electronics may actually be approaching a critical reversion point that can send shares even higher in August 2025.
Climb Global Solutions 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Climb Global Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's primary indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Benchmark Electronics and Climb Global Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Benchmark Electronics and Climb Global

The main advantage of trading using opposite Benchmark Electronics and Climb Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benchmark Electronics position performs unexpectedly, Climb Global 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 Climb Global will offset losses from the drop in Climb Global's long position.
The idea behind Benchmark Electronics and Climb Global Solutions 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.

Other Complementary Tools

Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Global Correlations
Find global opportunities by holding instruments from different markets
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities
Fundamental Analysis
View fundamental data based on most recent published financial statements
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios