Correlation Between Plexus Corp and Aviat Networks
Can any of the company-specific risk be diversified away by investing in both Plexus Corp and Aviat Networks 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 Aviat Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plexus Corp and Aviat Networks, you can compare the effects of market volatilities on Plexus Corp and Aviat Networks 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 Aviat Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plexus Corp and Aviat Networks.
Diversification Opportunities for Plexus Corp and Aviat Networks
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Plexus and Aviat is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Plexus Corp and Aviat Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aviat Networks 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 Aviat Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aviat Networks has no effect on the direction of Plexus Corp i.e., Plexus Corp and Aviat Networks go up and down completely randomly.
Pair Corralation between Plexus Corp and Aviat Networks
Given the investment horizon of 90 days Plexus Corp is expected to generate 1.94 times less return on investment than Aviat Networks. But when comparing it to its historical volatility, Plexus Corp is 1.42 times less risky than Aviat Networks. It trades about 0.13 of its potential returns per unit of risk. Aviat Networks is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 2,226 in Aviat Networks on April 17, 2025 and sell it today you would earn a total of 120.00 from holding Aviat Networks or generate 5.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Plexus Corp vs. Aviat Networks
Performance |
| Timeline |
| Plexus Corp |
| Aviat Networks |
Plexus Corp and Aviat Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plexus Corp and Aviat Networks
The main advantage of trading using opposite Plexus Corp and Aviat Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plexus Corp position performs unexpectedly, Aviat Networks 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 Aviat Networks will offset losses from the drop in Aviat Networks' long position.| Plexus Corp vs. Celestica | Plexus Corp vs. Benchmark Electronics | Plexus Corp vs. Flex | Plexus Corp vs. Jabil Circuit |
| Aviat Networks vs. Cambium Networks Corp | Aviat Networks vs. Ceragon Networks | Aviat Networks vs. KVH Industries | Aviat Networks vs. Knowles Cor |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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