Correlation Between Solaris Resources and Benitec Biopharma

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

By analyzing existing cross correlation between Solaris Resources and Benitec Biopharma Ltd, you can compare the effects of market volatilities on Solaris Resources and Benitec Biopharma 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 Solaris Resources with a short position of Benitec Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solaris Resources and Benitec Biopharma.

Diversification Opportunities for Solaris Resources and Benitec Biopharma

-0.53

Correlation Coefficient

Solaris Resources  Benitec Biopharma

Excellent diversification

The 3 months correlation between Solaris and Benitec is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Solaris Resources and Benitec Biopharma Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benitec Biopharma and Solaris Resources 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 Solaris Resources are associated (or correlated) with Benitec Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benitec Biopharma has no effect on the direction of Solaris Resources i.e., Solaris Resources and Benitec Biopharma go up and down completely randomly.

Pair Corralation between Solaris Resources and Benitec Biopharma

Given the investment horizon of 90 days Solaris Resources is expected to generate 0.86 times more return on investment than Benitec Biopharma. However, Solaris Resources is 1.16 times less risky than Benitec Biopharma. It trades about 0.13 of its potential returns per unit of risk. Benitec Biopharma Ltd is currently generating about -0.07 per unit of risk. If you would invest  439.00  in Solaris Resources on May 28, 2025 and sell it today you would earn a total of  114.00  from holding Solaris Resources or generate 25.97% return on investment over 90 days.

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

Solaris Resources  vs.  Benitec Biopharma Ltd

Solaris Resources

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Solaris Resources are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Solaris Resources reported solid returns over the last few months and may actually be approaching a breakup point.

Benitec Biopharma

Risk-Adjusted Performance

Weakest

Over the last 90 days Benitec Biopharma Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Solaris Resources and Benitec Biopharma

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

The idea behind Solaris Resources and Benitec Biopharma Ltd 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.