Correlation Between Plexus Corp and Fluent
Can any of the company-specific risk be diversified away by investing in both Plexus Corp and Fluent 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 Fluent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plexus Corp and Fluent Inc, you can compare the effects of market volatilities on Plexus Corp and Fluent 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 Fluent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plexus Corp and Fluent.
Diversification Opportunities for Plexus Corp and Fluent
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Plexus and Fluent is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Plexus Corp and Fluent Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluent Inc 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 Fluent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluent Inc has no effect on the direction of Plexus Corp i.e., Plexus Corp and Fluent go up and down completely randomly.
Pair Corralation between Plexus Corp and Fluent
Given the investment horizon of 90 days Plexus Corp is expected to generate 0.39 times more return on investment than Fluent. However, Plexus Corp is 2.56 times less risky than Fluent. It trades about 0.05 of its potential returns per unit of risk. Fluent Inc is currently generating about -0.01 per unit of risk. If you would invest 10,746 in Plexus Corp on August 29, 2024 and sell it today you would earn a total of 5,708 from holding Plexus Corp or generate 53.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Plexus Corp vs. Fluent Inc
Performance |
| Timeline |
| Plexus Corp |
| Fluent Inc |
Plexus Corp and Fluent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plexus Corp and Fluent
The main advantage of trading using opposite Plexus Corp and Fluent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plexus Corp position performs unexpectedly, Fluent 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 Fluent will offset losses from the drop in Fluent's long position.| Plexus Corp vs. Richardson Electronics | Plexus Corp vs. Interlink Electronics | Plexus Corp vs. SigmaTron International | Plexus Corp vs. Maris Tech |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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