Correlation Between Methode Electronics and QuickLogic

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

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

Diversification Opportunities for Methode Electronics and QuickLogic

-0.04

Correlation Coefficient

Methode Electronics  QuickLogic

Good diversification

The 3 months correlation between Methode and QuickLogic is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Methode Electronics and QuickLogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QuickLogic 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 QuickLogic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QuickLogic has no effect on the direction of Methode Electronics i.e., Methode Electronics and QuickLogic go up and down completely randomly.

Pair Corralation between Methode Electronics and QuickLogic

Considering the 90-day investment horizon Methode Electronics is expected to under-perform the QuickLogic. In addition to that, Methode Electronics is 1.0 times more volatile than QuickLogic. It trades about -0.01 of its total potential returns per unit of risk. QuickLogic is currently generating about 0.03 per unit of volatility. If you would invest  596.00  in QuickLogic on May 8, 2025 and sell it today you would earn a total of  6.00  from holding QuickLogic or generate 1.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Methode Electronics  vs.  QuickLogic

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 fairly strong technical and fundamental indicators, Methode Electronics is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

QuickLogic

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in QuickLogic are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain forward indicators, QuickLogic may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Methode Electronics and QuickLogic

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

The idea behind Methode Electronics and QuickLogic 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 Stocks Directory module to find actively traded stocks across global markets.