Correlation Between Meta Materials and Benchmark Electronics

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

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

Diversification Opportunities for Meta Materials and Benchmark Electronics

0.0

Correlation Coefficient

Meta Materials  Benchmark Electronics

Pay attention - limited upside

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

Pair Corralation between Meta Materials and Benchmark Electronics

If you would invest  3,638  in Benchmark Electronics on May 12, 2025 and sell it today you would earn a total of  204.00  from holding Benchmark Electronics or generate 5.61% return on investment over 90 days.

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

Meta Materials  vs.  Benchmark Electronics

Meta Materials

Risk-Adjusted Performance

Weakest

Over the last 90 days Meta Materials has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Meta Materials is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Benchmark Electronics

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Benchmark Electronics are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical indicators, Benchmark Electronics is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Meta Materials and Benchmark Electronics

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

The idea behind Meta Materials and Benchmark Electronics 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.