Correlation Between CTS and Evergy,

Can any of the company-specific risk be diversified away by investing in both CTS and Evergy, 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 CTS and Evergy, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CTS Corporation and Evergy,, you can compare the effects of market volatilities on CTS and Evergy, 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 CTS with a short position of Evergy,. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTS and Evergy,.

Diversification Opportunities for CTS and Evergy,

0.52

Correlation Coefficient

CTS  Evergy,

Very weak diversification

The 3 months correlation between CTS and Evergy, is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding CTS Corp. and Evergy, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evergy, and CTS 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 CTS Corporation are associated (or correlated) with Evergy,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evergy, has no effect on the direction of CTS i.e., CTS and Evergy, go up and down completely randomly.

Pair Corralation between CTS and Evergy,

Considering the 90-day investment horizon CTS Corporation is expected to generate 2.5 times more return on investment than Evergy,. However, CTS is 2.5 times more volatile than Evergy,. It trades about 0.08 of its potential returns per unit of risk. Evergy, is currently generating about 0.06 per unit of risk. If you would invest  4,698  in CTS Corporation on October 23, 2024 and sell it today you would earn a total of  466.00  from holding CTS Corporation or generate 9.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

CTS Corp.  vs.  Evergy,

CTS Corporation

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CTS Corporation are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, CTS may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Evergy,

Risk-Adjusted Performance

4 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Evergy, are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Evergy, is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with CTS and Evergy,

The main advantage of trading using opposite CTS and Evergy, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTS position performs unexpectedly, Evergy, 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 Evergy, will offset losses from the drop in Evergy,'s long position.

The idea behind CTS Corporation and Evergy, 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.

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..