Correlation Between Benchmark Electronics and SEEK

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

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

Diversification Opportunities for Benchmark Electronics and SEEK

0.0

Correlation Coefficient

Benchmark Electronics  SEEK

Pay attention - limited upside

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

Pair Corralation between Benchmark Electronics and SEEK

Assuming the 90 days horizon Benchmark Electronics is not expected to generate positive returns. Moreover, Benchmark Electronics is 1.07 times more volatile than SEEK Limited. It trades away all of its potential returns to assume current level of volatility. SEEK Limited is currently generating about 0.09 per unit of risk. If you would invest  1,280  in SEEK Limited on May 16, 2025 and sell it today you would earn a total of  110.00  from holding SEEK Limited or generate 8.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Benchmark Electronics  vs.  SEEK Limited

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. Despite nearly stable basic indicators, Benchmark Electronics is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

SEEK Limited

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in SEEK Limited are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, SEEK may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Benchmark Electronics and SEEK

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

The idea behind Benchmark Electronics and SEEK Limited 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.