Correlation Between Methode Electronics and Meta Materials

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

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

Diversification Opportunities for Methode Electronics and Meta Materials

0.0

Correlation Coefficient

Methode Electronics  Meta Materials

Pay attention - limited upside

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

Pair Corralation between Methode Electronics and Meta Materials

If you would invest  631.00  in Methode Electronics on May 1, 2025 and sell it today you would earn a total of  27.00  from holding Methode Electronics or generate 4.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Methode Electronics  vs.  Meta Materials

Methode Electronics

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Methode Electronics are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating technical and fundamental indicators, Methode Electronics may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Meta Materials

Risk-Adjusted Performance

Very Weak

Over the last 90 days Meta Materials has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Meta Materials is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Methode Electronics and Meta Materials

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

The idea behind Methode Electronics and Meta Materials 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.