Correlation Between Pattern Group and Plexus Corp

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

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

Diversification Opportunities for Pattern Group and Plexus Corp

-0.52

Correlation Coefficient

Pattern Group  Plexus Corp

Excellent diversification

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

Pair Corralation between Pattern Group and Plexus Corp

Given the investment horizon of 90 days Pattern Group Series is expected to generate 1.99 times more return on investment than Plexus Corp. However, Pattern Group is 1.99 times more volatile than Plexus Corp. It trades about 0.08 of its potential returns per unit of risk. Plexus Corp is currently generating about 0.06 per unit of risk. If you would invest  1,563  in Pattern Group Series on August 19, 2025 and sell it today you would earn a total of  183.00  from holding Pattern Group Series or generate 11.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	65.63%
Values	Daily Returns

Pattern Group Series  vs.  Plexus Corp

Pattern Group Series

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Pattern Group Series are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Pattern Group displayed solid returns over the last few months and may actually be approaching a breakup point.

Plexus Corp

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Plexus Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Plexus Corp may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with Pattern Group and Plexus Corp

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

The idea behind Pattern Group Series and Plexus Corp 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.