Correlation Between NSTAR Electric and Plexus Corp
Can any of the company-specific risk be diversified away by investing in both NSTAR Electric and Plexus 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 NSTAR Electric and Plexus Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NSTAR Electric and Plexus Corp, you can compare the effects of market volatilities on NSTAR Electric and Plexus 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 NSTAR Electric with a short position of Plexus Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of NSTAR Electric and Plexus Corp.
Diversification Opportunities for NSTAR Electric and Plexus Corp
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between NSTAR and Plexus is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding NSTAR Electric and Plexus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plexus Corp and NSTAR Electric 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 NSTAR Electric are associated (or correlated) with Plexus Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plexus Corp has no effect on the direction of NSTAR Electric i.e., NSTAR Electric and Plexus Corp go up and down completely randomly.
Pair Corralation between NSTAR Electric and Plexus Corp
If you would invest 0.00 in NSTAR Electric on November 6, 2024 and sell it today you would earn a total of 0.00 from holding NSTAR Electric or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
NSTAR Electric vs. Plexus Corp
Performance |
| Timeline |
| NSTAR Electric |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Plexus Corp |
NSTAR Electric and Plexus Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NSTAR Electric and Plexus Corp
The main advantage of trading using opposite NSTAR Electric and Plexus Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NSTAR Electric position performs unexpectedly, Plexus 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 Plexus Corp will offset losses from the drop in Plexus Corp's long position.| NSTAR Electric vs. Codexis | NSTAR Electric vs. Carlyle Group | NSTAR Electric vs. CF Industries Holdings | NSTAR Electric vs. American Vanguard |
| Plexus Corp vs. Celestica | Plexus Corp vs. Benchmark Electronics | Plexus Corp vs. Flex | Plexus Corp vs. Jabil Circuit |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |