Correlation Between Benson Hill, and Mosaic

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

By analyzing existing cross correlation between Benson Hill, Common and The Mosaic, you can compare the effects of market volatilities on Benson Hill, and Mosaic 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 Benson Hill, with a short position of Mosaic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benson Hill, and Mosaic.

Diversification Opportunities for Benson Hill, and Mosaic

-0.79

Correlation Coefficient

Benson Hill,  Mosaic

Pay attention - limited upside

The 3 months correlation between Benson and Mosaic is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Benson Hill, Common and The Mosaic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mosaic and Benson Hill, 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 Benson Hill, Common are associated (or correlated) with Mosaic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mosaic has no effect on the direction of Benson Hill, i.e., Benson Hill, and Mosaic go up and down completely randomly.

Pair Corralation between Benson Hill, and Mosaic

Given the investment horizon of 90 days Benson Hill, Common is expected to generate 37.07 times more return on investment than Mosaic. However, Benson Hill, is 37.07 times more volatile than The Mosaic. It trades about 0.2 of its potential returns per unit of risk. The Mosaic is currently generating about 0.15 per unit of risk. If you would invest  7.00  in Benson Hill, Common on May 5, 2025 and sell it today you would lose (3.00) from holding Benson Hill, Common or give up 42.86% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	28.57%
Values	Daily Returns

Benson Hill, Common  vs.  The Mosaic

Benson Hill, Common

Risk-Adjusted Performance

Good

Over the last 90 days Benson Hill, Common has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite inconsistent forward indicators, Benson Hill, disclosed solid returns over the last few months and may actually be approaching a breakup point.

Mosaic

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in The Mosaic are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Mosaic unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Benson Hill, and Mosaic

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

The idea behind Benson Hill, Common and The Mosaic 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.