METHODE ELECTRONICS Correlations

ME5A Stock

EUR 6.25 0.25 4.17%

The correlation of METHODE ELECTRONICS is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

METHODE ELECTRONICS Correlation With Market

Modest diversification

The correlation between METHODE ELECTRONICS and DJI is 0.24 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding METHODE ELECTRONICS and DJI in the same portfolio, assuming nothing else is changed.

The ability to find closely correlated positions to METHODE ELECTRONICS could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace METHODE ELECTRONICS when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back METHODE ELECTRONICS - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling METHODE ELECTRONICS to buy it.

Moving together with METHODE Stock

0.75	APC	Apple Inc	Pair Corr
0.75	APC	Apple Inc	Pair Corr
0.72	APC	Apple Inc	Pair Corr
0.75	APC	Apple Inc	Pair Corr
0.92	MSF	Microsoft	Pair Corr
0.92	MSF	Microsoft	Pair Corr
0.92	MSF	Microsoft	Pair Corr
0.92	MSF	Microsoft	Pair Corr
0.92	MSF	Microsoft	Pair Corr
0.87	AMZ	Amazon Inc	Pair Corr
0.79	BYRA	BANK RAKYAT IND	Pair Corr
0.61	BYRA	PT Bank Rakyat	Pair Corr
0.61	BYRA	BANK RAKYAT IND	Pair Corr
0.81	PQ9	BANK MANDIRI	Pair Corr
0.74	DBPD	Xtrackers ShortDAX	Pair Corr

Moving against METHODE Stock

0.73	DBPE	Xtrackers LevDAX	Pair Corr
0.5	E908	Lyxor 1	Pair Corr

Related Correlations Analysis

	6C2	4H7	WIQ	H3M	CI7	WIQ	45P	G7W
6C2		0.5	-0.25	-0.41	0.82	-0.22	-0.65	0.73	6C2
4H7	0.5		-0.45	-0.12	0.5	-0.46	-0.42	0.5	4H7
WIQ	-0.25	-0.45		-0.41	-0.21	0.99	0.21	-0.08	WIQ
H3M	-0.41	-0.12	-0.41		-0.35	-0.42	0.3	-0.46	H3M
CI7	0.82	0.5	-0.21	-0.35		-0.19	-0.44	0.69	CI7
WIQ	-0.22	-0.46	0.99	-0.42	-0.19		0.21	-0.06	WIQ
45P	-0.65	-0.42	0.21	0.3	-0.44	0.21		-0.47	45P
G7W	0.73	0.5	-0.08	-0.46	0.69	-0.06	-0.47		G7W
	6C2	4H7	WIQ	H3M	CI7	WIQ	45P	G7W

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

WIQ	+ 0.99	WIQ
CI7	+ 0.82	6C2
G7W	+ 0.73	6C2
G7W	+ 0.69	CI7
4H7	+ 0.5	6C2
CI7	+ 0.5	4H7

High negative correlations

45P	- 0.65	6C2
G7W	- 0.47	45P
G7W	- 0.46	H3M
WIQ	- 0.46	4H7
WIQ	- 0.45	4H7
45P	- 0.44	CI7

Risk-Adjusted Indicators

There is a big difference between METHODE Stock performing well and METHODE ELECTRONICS Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze METHODE ELECTRONICS's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
6C2	3.17	0.45	0.14	0.47	2.99	(4.02)	7.84	(5.34)	25.40
4H7	2.10	0.06	0.04	(0.35)	2.20	(2.96)	5.56	(4.40)	12.63
WIQ	3.08	(0.69)	0.00	(1.95)	0.00	0.00	5.63	(7.58)	30.78
H3M	2.67	0.32	0.09	(0.84)	3.61	(3.01)	5.81	(4.44)	20.57
CI7	2.83	0.68	0.09	0.61	3.95	(5.10)	7.14	(3.12)	49.46
WIQ	3.06	(0.64)	0.00	(1.91)	0.00	0.00	6.05	(6.52)	34.26
45P	2.77	0.10	0.03	(0.17)	3.59	(3.94)	6.56	(6.45)	25.64
G7W	1.35	0.06	0.05	0.46	1.69	(1.37)	2.70	(3.04)	7.46

Be your own money manager

Our tools can tell you how much better you can do entering a position in METHODE ELECTRONICS without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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