Correlation Between Plexus Corp and Worthington Steel
Can any of the company-specific risk be diversified away by investing in both Plexus Corp and Worthington Steel 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 Worthington Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plexus Corp and Worthington Steel, you can compare the effects of market volatilities on Plexus Corp and Worthington Steel 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 Worthington Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plexus Corp and Worthington Steel.
Diversification Opportunities for Plexus Corp and Worthington Steel
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Plexus and Worthington is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Plexus Corp and Worthington Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Worthington Steel 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 Worthington Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Worthington Steel has no effect on the direction of Plexus Corp i.e., Plexus Corp and Worthington Steel go up and down completely randomly.
Pair Corralation between Plexus Corp and Worthington Steel
Given the investment horizon of 90 days Plexus Corp is expected to under-perform the Worthington Steel. In addition to that, Plexus Corp is 1.26 times more volatile than Worthington Steel. It trades about -0.17 of its total potential returns per unit of risk. Worthington Steel is currently generating about -0.09 per unit of volatility. If you would invest 3,038 in Worthington Steel on November 4, 2024 and sell it today you would lose (133.00) from holding Worthington Steel or give up 4.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Plexus Corp vs. Worthington Steel
Performance |
| Timeline |
| Plexus Corp |
| Worthington Steel |
Plexus Corp and Worthington Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plexus Corp and Worthington Steel
The main advantage of trading using opposite Plexus Corp and Worthington Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plexus Corp position performs unexpectedly, Worthington Steel 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 Worthington Steel will offset losses from the drop in Worthington Steel's long position.| Plexus Corp vs. Celestica | Plexus Corp vs. Benchmark Electronics | Plexus Corp vs. Flex | Plexus Corp vs. Jabil Circuit |
| Worthington Steel vs. Pearson PLC ADR | Worthington Steel vs. Zane Interactive Publishing | Worthington Steel vs. Reservoir Media | Worthington Steel vs. Vasta Platform |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Commodity Directory Find actively traded commodities issued by global exchanges |