Correlation Between Benchmark Botanics and Textmunication Holdings

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

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

Diversification Opportunities for Benchmark Botanics and Textmunication Holdings

0.0

Correlation Coefficient

Benchmark Botanics  Textmunication Holdings

Pay attention - limited upside

The 3 months correlation between Benchmark and Textmunication is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Benchmark Botanics and Textmunication Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Textmunication Holdings and Benchmark Botanics 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 Botanics are associated (or correlated) with Textmunication Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Textmunication Holdings has no effect on the direction of Benchmark Botanics i.e., Benchmark Botanics and Textmunication Holdings go up and down completely randomly.

Pair Corralation between Benchmark Botanics and Textmunication Holdings

If you would invest (100.00) in Textmunication Holdings on May 1, 2025 and sell it today you would earn a total of  100.00  from holding Textmunication Holdings or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Benchmark Botanics  vs.  Textmunication Holdings

Benchmark Botanics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Benchmark Botanics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward-looking signals, Benchmark Botanics is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Textmunication Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Textmunication Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Textmunication Holdings is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Benchmark Botanics and Textmunication Holdings

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

The idea behind Benchmark Botanics and Textmunication 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.