Correlation Between Plexus Corp and Atlantic Union
Can any of the company-specific risk be diversified away by investing in both Plexus Corp and Atlantic Union 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 Plexus Corp and Atlantic Union into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plexus Corp and Atlantic Union Bankshares, you can compare the effects of market volatilities on Plexus Corp and Atlantic Union 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 Plexus Corp with a short position of Atlantic Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plexus Corp and Atlantic Union.
Diversification Opportunities for Plexus Corp and Atlantic Union
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Plexus and Atlantic is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Plexus Corp and Atlantic Union Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantic Union Bankshares and Plexus Corp 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 Plexus Corp are associated (or correlated) with Atlantic Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantic Union Bankshares has no effect on the direction of Plexus Corp i.e., Plexus Corp and Atlantic Union go up and down completely randomly.
Pair Corralation between Plexus Corp and Atlantic Union
Given the investment horizon of 90 days Plexus Corp is expected to generate 1.39 times more return on investment than Atlantic Union. However, Plexus Corp is 1.39 times more volatile than Atlantic Union Bankshares. It trades about 0.09 of its potential returns per unit of risk. Atlantic Union Bankshares is currently generating about 0.07 per unit of risk. If you would invest 10,156 in Plexus Corp on September 12, 2024 and sell it today you would earn a total of 6,501 from holding Plexus Corp or generate 64.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Plexus Corp vs. Atlantic Union Bankshares
Performance |
| Timeline |
| Plexus Corp |
| Atlantic Union Bankshares |
Plexus Corp and Atlantic Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plexus Corp and Atlantic Union
The main advantage of trading using opposite Plexus Corp and Atlantic Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plexus Corp position performs unexpectedly, Atlantic Union 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 Atlantic Union will offset losses from the drop in Atlantic Union's long position.| Plexus Corp vs. Benchmark Electronics | Plexus Corp vs. Flex | Plexus Corp vs. Sanmina | Plexus Corp vs. Bel Fuse A |
| Atlantic Union vs. Zane Interactive Publishing | Atlantic Union vs. WEBTOON Entertainment Common | Atlantic Union vs. Udemy Inc | Atlantic Union vs. AMREP |
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.
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