Correlation Between Benchmark Electronics and TCL Electronics

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

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

Diversification Opportunities for Benchmark Electronics and TCL Electronics

-0.61

Correlation Coefficient

Benchmark Electronics  TCL Electronics

Excellent diversification

The 3 months correlation between Benchmark and TCL is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Benchmark Electronics and TCL Electronics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TCL Electronics Holdings 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 TCL Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TCL Electronics Holdings has no effect on the direction of Benchmark Electronics i.e., Benchmark Electronics and TCL Electronics go up and down completely randomly.

Pair Corralation between Benchmark Electronics and TCL Electronics

Considering the 90-day investment horizon Benchmark Electronics is expected to generate 0.47 times more return on investment than TCL Electronics. However, Benchmark Electronics is 2.14 times less risky than TCL Electronics. It trades about 0.13 of its potential returns per unit of risk. TCL Electronics Holdings is currently generating about 0.03 per unit of risk. If you would invest  3,990  in Benchmark Electronics on September 6, 2025 and sell it today you would earn a total of  711.00  from holding Benchmark Electronics or generate 17.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Benchmark Electronics  vs.  TCL Electronics Holdings

Benchmark Electronics

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Benchmark Electronics are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical indicators, Benchmark Electronics exhibited solid returns over the last few months and may actually be approaching a breakup point.

TCL Electronics Holdings

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in TCL Electronics Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly conflicting technical indicators, TCL Electronics may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with Benchmark Electronics and TCL Electronics

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

The idea behind Benchmark Electronics and TCL Electronics Holdings 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.