Correlation Between AT S and Methode Electronics

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

By analyzing existing cross correlation between AT S Austria and Methode Electronics, you can compare the effects of market volatilities on AT S and Methode Electronics 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 AT S with a short position of Methode Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of AT S and Methode Electronics.

Diversification Opportunities for AT S and Methode Electronics

-0.52

Correlation Coefficient

AT S  Methode Electronics

Excellent diversification

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

Pair Corralation between AT S and Methode Electronics

Assuming the 90 days horizon AT S Austria is expected to generate 4.1 times more return on investment than Methode Electronics. However, AT S is 4.1 times more volatile than Methode Electronics. It trades about 0.16 of its potential returns per unit of risk. Methode Electronics is currently generating about -0.06 per unit of risk. If you would invest  1,252  in AT S Austria on September 10, 2025 and sell it today you would earn a total of  2,283  from holding AT S Austria or generate 182.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

AT S Austria  vs.  Methode Electronics

AT S Austria

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in AT S Austria are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, AT S reported solid returns over the last few months and may actually be approaching a breakup point.

Methode Electronics

Risk-Adjusted Performance

Weakest

Over the last 90 days Methode Electronics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in January 2026. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with AT S and Methode Electronics

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

The idea behind AT S Austria and Methode Electronics 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.