Correlation Between Benchmark Metals and PetroTal Corp

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

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

Diversification Opportunities for Benchmark Metals and PetroTal Corp

-0.14

Correlation Coefficient

Benchmark Metals  PetroTal Corp

Good diversification

The 3 months correlation between Benchmark and PetroTal is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Benchmark Metals and PetroTal Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroTal Corp and Benchmark Metals 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 Metals are associated (or correlated) with PetroTal Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PetroTal Corp has no effect on the direction of Benchmark Metals i.e., Benchmark Metals and PetroTal Corp go up and down completely randomly.

Pair Corralation between Benchmark Metals and PetroTal Corp

Assuming the 90 days horizon Benchmark Metals is expected to generate 0.42 times more return on investment than PetroTal Corp. However, Benchmark Metals is 2.39 times less risky than PetroTal Corp. It trades about 0.04 of its potential returns per unit of risk. PetroTal Corp is currently generating about -0.15 per unit of risk. If you would invest  81.00  in Benchmark Metals on August 23, 2025 and sell it today you would earn a total of  3.00  from holding Benchmark Metals or generate 3.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Benchmark Metals  vs.  PetroTal Corp

Benchmark Metals

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Benchmark Metals are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Benchmark Metals is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

PetroTal Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days PetroTal Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's essential indicators remain very healthy which may send shares a bit higher in December 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Benchmark Metals and PetroTal Corp

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

The idea behind Benchmark Metals and PetroTal Corp 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.