Correlation Between Array Technologies and Shyft

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

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

Diversification Opportunities for Array Technologies and Shyft

-0.54

Correlation Coefficient

Array Technologies  Shyft

Excellent diversification

The 3 months correlation between Array and Shyft is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Array Technologies and Shyft Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shyft Group and Array Technologies 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 Array Technologies are associated (or correlated) with Shyft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shyft Group has no effect on the direction of Array Technologies i.e., Array Technologies and Shyft go up and down completely randomly.

Pair Corralation between Array Technologies and Shyft

Given the investment horizon of 90 days Array Technologies is expected to generate 3.78 times less return on investment than Shyft. In addition to that, Array Technologies is 2.5 times more volatile than Shyft Group. It trades about 0.04 of its total potential returns per unit of risk. Shyft Group is currently generating about 0.38 per unit of volatility. If you would invest  973.00  in Shyft Group on May 18, 2025 and sell it today you would earn a total of  281.00  from holding Shyft Group or generate 28.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	50.0%
Values	Daily Returns

Array Technologies  vs.  Shyft Group

Array Technologies

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Array Technologies are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Array Technologies showed solid returns over the last few months and may actually be approaching a breakup point.

Shyft Group

Risk-Adjusted Performance

Strong

Over the last 90 days Shyft Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly fragile basic indicators, Shyft reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Array Technologies and Shyft

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

The idea behind Array Technologies and Shyft Group 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.