Correlation Between Utilities Select and PlasmaTech

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

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

Diversification Opportunities for Utilities Select and PlasmaTech

0.0

Correlation Coefficient

Utilities Select  PlasmaTech

Pay attention - limited upside

The 3 months correlation between Utilities and PlasmaTech is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Utilities Select Sector and PlasmaTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PlasmaTech and Utilities Select 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 Utilities Select Sector are associated (or correlated) with PlasmaTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PlasmaTech has no effect on the direction of Utilities Select i.e., Utilities Select and PlasmaTech go up and down completely randomly.

Pair Corralation between Utilities Select and PlasmaTech

If you would invest  8,681  in Utilities Select Sector on July 28, 2025 and sell it today you would earn a total of  458.00  from holding Utilities Select Sector or generate 5.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Utilities Select Sector  vs.  PlasmaTech

Utilities Select Sector

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Utilities Select Sector are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent essential indicators, Utilities Select may actually be approaching a critical reversion point that can send shares even higher in November 2025.

PlasmaTech

Risk-Adjusted Performance

Weakest

Over the last 90 days PlasmaTech has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, PlasmaTech is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Utilities Select and PlasmaTech

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

The idea behind Utilities Select Sector and PlasmaTech 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.