Correlation Between Plexus Corp and Stingray
Can any of the company-specific risk be diversified away by investing in both Plexus Corp and Stingray 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 Stingray into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plexus Corp and Stingray Group, you can compare the effects of market volatilities on Plexus Corp and Stingray 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 Stingray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plexus Corp and Stingray.
Diversification Opportunities for Plexus Corp and Stingray
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Plexus and Stingray is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Plexus Corp and Stingray Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stingray Group 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 Stingray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stingray Group has no effect on the direction of Plexus Corp i.e., Plexus Corp and Stingray go up and down completely randomly.
Pair Corralation between Plexus Corp and Stingray
Given the investment horizon of 90 days Plexus Corp is expected to generate 1.01 times more return on investment than Stingray. However, Plexus Corp is 1.01 times more volatile than Stingray Group. It trades about 0.19 of its potential returns per unit of risk. Stingray Group is currently generating about 0.13 per unit of risk. If you would invest 14,658 in Plexus Corp on August 31, 2024 and sell it today you would earn a total of 1,575 from holding Plexus Corp or generate 10.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Plexus Corp vs. Stingray Group
Performance |
| Timeline |
| Plexus Corp |
| Stingray Group |
Plexus Corp and Stingray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plexus Corp and Stingray
The main advantage of trading using opposite Plexus Corp and Stingray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plexus Corp position performs unexpectedly, Stingray 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 Stingray will offset losses from the drop in Stingray's long position.| Plexus Corp vs. Sanmina | Plexus Corp vs. Benchmark Electronics | Plexus Corp vs. Methode Electronics | Plexus Corp vs. Celestica |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |