Correlation Between Benchmark Electronics and Nano Dimension

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

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

Diversification Opportunities for Benchmark Electronics and Nano Dimension

-0.04

Correlation Coefficient

Benchmark Electronics  Nano Dimension

Good diversification

The 3 months correlation between Benchmark and Nano is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Benchmark Electronics and Nano Dimension in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nano Dimension 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 Nano Dimension. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nano Dimension has no effect on the direction of Benchmark Electronics i.e., Benchmark Electronics and Nano Dimension go up and down completely randomly.

Pair Corralation between Benchmark Electronics and Nano Dimension

Considering the 90-day investment horizon Benchmark Electronics is expected to under-perform the Nano Dimension. But the stock apears to be less risky and, when comparing its historical volatility, Benchmark Electronics is 1.27 times less risky than Nano Dimension. The stock trades about -0.02 of its potential returns per unit of risk. The Nano Dimension is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  154.00  in Nano Dimension on July 6, 2025 and sell it today you would earn a total of  6.00  from holding Nano Dimension or generate 3.9% return on investment over 90 days.

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

Benchmark Electronics  vs.  Nano Dimension

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 latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Nano Dimension

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Nano Dimension are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental indicators, Nano Dimension is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Benchmark Electronics and Nano Dimension

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

The idea behind Benchmark Electronics and Nano Dimension 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.