Correlation Between Plexus Corp and Jiangsu Expressway
Can any of the company-specific risk be diversified away by investing in both Plexus Corp and Jiangsu Expressway 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 Jiangsu Expressway into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plexus Corp and Jiangsu Expressway Co, you can compare the effects of market volatilities on Plexus Corp and Jiangsu Expressway 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 Jiangsu Expressway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plexus Corp and Jiangsu Expressway.
Diversification Opportunities for Plexus Corp and Jiangsu Expressway
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Plexus and Jiangsu is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Plexus Corp and Jiangsu Expressway Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Expressway 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 Jiangsu Expressway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Expressway has no effect on the direction of Plexus Corp i.e., Plexus Corp and Jiangsu Expressway go up and down completely randomly.
Pair Corralation between Plexus Corp and Jiangsu Expressway
Given the investment horizon of 90 days Plexus Corp is expected to generate 0.45 times more return on investment than Jiangsu Expressway. However, Plexus Corp is 2.22 times less risky than Jiangsu Expressway. It trades about 0.09 of its potential returns per unit of risk. Jiangsu Expressway Co is currently generating about 0.02 per unit of risk. If you would invest 9,507 in Plexus Corp on August 31, 2024 and sell it today you would earn a total of 6,933 from holding Plexus Corp or generate 72.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Plexus Corp vs. Jiangsu Expressway Co
Performance |
| Timeline |
| Plexus Corp |
| Jiangsu Expressway |
Plexus Corp and Jiangsu Expressway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plexus Corp and Jiangsu Expressway
The main advantage of trading using opposite Plexus Corp and Jiangsu Expressway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plexus Corp position performs unexpectedly, Jiangsu Expressway 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 Jiangsu Expressway will offset losses from the drop in Jiangsu Expressway's long position.| Plexus Corp vs. Sanmina | Plexus Corp vs. Benchmark Electronics | Plexus Corp vs. Celestica | Plexus Corp vs. CTS Corporation |
| Jiangsu Expressway vs. Antero Midstream Partners | Jiangsu Expressway vs. WEC Energy Group | Jiangsu Expressway vs. Southwest Gas Holdings | Jiangsu Expressway vs. Brandywine Realty Trust |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |