Correlation Between Plexus Corp and SPS Commerce
Can any of the company-specific risk be diversified away by investing in both Plexus Corp and SPS Commerce 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 SPS Commerce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plexus Corp and SPS Commerce, you can compare the effects of market volatilities on Plexus Corp and SPS Commerce 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 SPS Commerce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plexus Corp and SPS Commerce.
Diversification Opportunities for Plexus Corp and SPS Commerce
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Plexus and SPS is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Plexus Corp and SPS Commerce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPS Commerce 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 SPS Commerce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPS Commerce has no effect on the direction of Plexus Corp i.e., Plexus Corp and SPS Commerce go up and down completely randomly.
Pair Corralation between Plexus Corp and SPS Commerce
Given the investment horizon of 90 days Plexus Corp is expected to generate 0.77 times more return on investment than SPS Commerce. However, Plexus Corp is 1.29 times less risky than SPS Commerce. It trades about 0.09 of its potential returns per unit of risk. SPS Commerce is currently generating about -0.05 per unit of risk. If you would invest 13,806 in Plexus Corp on October 12, 2025 and sell it today you would earn a total of 1,696 from holding Plexus Corp or generate 12.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Plexus Corp vs. SPS Commerce
Performance |
| Timeline |
| Plexus Corp |
| SPS Commerce |
Plexus Corp and SPS Commerce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plexus Corp and SPS Commerce
The main advantage of trading using opposite Plexus Corp and SPS Commerce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plexus Corp position performs unexpectedly, SPS Commerce 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 SPS Commerce will offset losses from the drop in SPS Commerce's long position.The idea behind Plexus Corp and SPS Commerce 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.| SPS Commerce vs. Euronet Worldwide | SPS Commerce vs. PagSeguro Digital | SPS Commerce vs. WeRide American Depositary | SPS Commerce vs. Avepoint |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |