Correlation Between BPCEGP and Plexus Corp
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By analyzing existing cross correlation between BPCEGP 3648 14 JAN 37 and Plexus Corp, you can compare the effects of market volatilities on BPCEGP 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 BPCEGP with a short position of Plexus Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of BPCEGP and Plexus Corp.
Diversification Opportunities for BPCEGP and Plexus Corp
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BPCEGP and Plexus is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding BPCEGP 3648 14 JAN 37 and Plexus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plexus Corp and BPCEGP 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 BPCEGP 3648 14 JAN 37 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 BPCEGP i.e., BPCEGP and Plexus Corp go up and down completely randomly.
Pair Corralation between BPCEGP and Plexus Corp
Assuming the 90 days trading horizon BPCEGP is expected to generate 31.3 times less return on investment than Plexus Corp. But when comparing it to its historical volatility, BPCEGP 3648 14 JAN 37 is 1.6 times less risky than Plexus Corp. It trades about 0.0 of its potential returns per unit of risk. Plexus Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 9,169 in Plexus Corp on August 27, 2024 and sell it today you would earn a total of 7,032 from holding Plexus Corp or generate 76.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 27.88% |
| Values | Daily Returns |
BPCEGP 3648 14 JAN 37 vs. Plexus Corp
Performance |
| Timeline |
| BPCEGP 3648 14 |
| Plexus Corp |
BPCEGP and Plexus Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BPCEGP and Plexus Corp
The main advantage of trading using opposite BPCEGP and Plexus Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BPCEGP 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.The idea behind BPCEGP 3648 14 JAN 37 and Plexus Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Plexus Corp vs. Celestica | Plexus Corp vs. Benchmark Electronics | Plexus Corp vs. Flex | Plexus Corp vs. Jabil Circuit |
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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