Correlation Between Benchmark Electronics and Insight Enterprises

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

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

Diversification Opportunities for Benchmark Electronics and Insight Enterprises

0.66

Correlation Coefficient

Benchmark Electronics  Insight Enterprises

Poor diversification

The 3 months correlation between Benchmark and Insight is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Benchmark Electronics and Insight Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Insight Enterprises 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 Insight Enterprises. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Insight Enterprises has no effect on the direction of Benchmark Electronics i.e., Benchmark Electronics and Insight Enterprises go up and down completely randomly.

Pair Corralation between Benchmark Electronics and Insight Enterprises

Considering the 90-day investment horizon Benchmark Electronics is expected to generate 0.56 times more return on investment than Insight Enterprises. However, Benchmark Electronics is 1.8 times less risky than Insight Enterprises. It trades about 0.11 of its potential returns per unit of risk. Insight Enterprises is currently generating about -0.05 per unit of risk. If you would invest  3,455  in Benchmark Electronics on May 3, 2025 and sell it today you would earn a total of  348.50  from holding Benchmark Electronics or generate 10.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

Benchmark Electronics  vs.  Insight Enterprises

Benchmark Electronics

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Benchmark Electronics are ranked lower than 8 (%) 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 September 2025.

Insight Enterprises

Risk-Adjusted Performance

Very Weak

Over the last 90 days Insight Enterprises has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's forward indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Benchmark Electronics and Insight Enterprises

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

The idea behind Benchmark Electronics and Insight Enterprises 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.