Correlation Between SigmaTron International and Plexus Corp
Can any of the company-specific risk be diversified away by investing in both SigmaTron International and Plexus Corp 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 SigmaTron International and Plexus Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SigmaTron International and Plexus Corp, you can compare the effects of market volatilities on SigmaTron International and Plexus Corp 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 SigmaTron International with a short position of Plexus Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of SigmaTron International and Plexus Corp.
Diversification Opportunities for SigmaTron International and Plexus Corp
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between SigmaTron and Plexus is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding SigmaTron International and Plexus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plexus Corp and SigmaTron International 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 SigmaTron International are associated (or correlated) with Plexus Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plexus Corp has no effect on the direction of SigmaTron International i.e., SigmaTron International and Plexus Corp go up and down completely randomly.
Pair Corralation between SigmaTron International and Plexus Corp
Given the investment horizon of 90 days SigmaTron International is expected to generate 1.35 times more return on investment than Plexus Corp. However, SigmaTron International is 1.35 times more volatile than Plexus Corp. It trades about -0.08 of its potential returns per unit of risk. Plexus Corp is currently generating about -0.13 per unit of risk. If you would invest 177.00 in SigmaTron International on November 2, 2024 and sell it today you would lose (13.00) from holding SigmaTron International or give up 7.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SigmaTron International vs. Plexus Corp
Performance |
| Timeline |
| SigmaTron International |
| Plexus Corp |
SigmaTron International and Plexus Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SigmaTron International and Plexus Corp
The main advantage of trading using opposite SigmaTron International and Plexus Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SigmaTron International position performs unexpectedly, Plexus Corp 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 Plexus Corp will offset losses from the drop in Plexus Corp's long position.| SigmaTron International vs. Integrated Media Technology | SigmaTron International vs. Data IO | SigmaTron International vs. Research Frontiers Incorporated | SigmaTron International vs. Maris Tech |
| Plexus Corp vs. Rigetti Computing | Plexus Corp vs. IONQ WT | Plexus Corp vs. Arqit Quantum Warrants | Plexus Corp vs. QBTS WT |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |