Correlation Between Plexus Corp and Corning Incorporated
Can any of the company-specific risk be diversified away by investing in both Plexus Corp and Corning Incorporated 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 Corning Incorporated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plexus Corp and Corning Incorporated, you can compare the effects of market volatilities on Plexus Corp and Corning Incorporated 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 Corning Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plexus Corp and Corning Incorporated.
Diversification Opportunities for Plexus Corp and Corning Incorporated
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Plexus and Corning is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Plexus Corp and Corning Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corning Incorporated 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 Corning Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corning Incorporated has no effect on the direction of Plexus Corp i.e., Plexus Corp and Corning Incorporated go up and down completely randomly.
Pair Corralation between Plexus Corp and Corning Incorporated
Given the investment horizon of 90 days Plexus Corp is expected to under-perform the Corning Incorporated. But the stock apears to be less risky and, when comparing its historical volatility, Plexus Corp is 1.06 times less risky than Corning Incorporated. The stock trades about -0.22 of its potential returns per unit of risk. The Corning Incorporated is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 4,889 in Corning Incorporated on December 3, 2024 and sell it today you would earn a total of 4.50 from holding Corning Incorporated or generate 0.09% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Plexus Corp vs. Corning Incorporated
Performance |
Timeline |
Plexus Corp |
Corning Incorporated |
Plexus Corp and Corning Incorporated Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Plexus Corp and Corning Incorporated
The main advantage of trading using opposite Plexus Corp and Corning Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plexus Corp position performs unexpectedly, Corning Incorporated 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 Corning Incorporated will offset losses from the drop in Corning Incorporated's long position.Plexus Corp vs. Celestica | Plexus Corp vs. Benchmark Electronics | Plexus Corp vs. Flex | Plexus Corp vs. Jabil Circuit |
Corning Incorporated vs. OSI Systems | Corning Incorporated vs. Fabrinet | Corning Incorporated vs. Jabil Circuit | Corning Incorporated vs. Vicor |
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
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |