Correlation Between Maris Tech and Interlink Electronics

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

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

Diversification Opportunities for Maris Tech and Interlink Electronics

0.67

Correlation Coefficient

Maris Tech  Interlink Electronics

Poor diversification

The 3 months correlation between Maris and Interlink is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Maris Tech and Interlink Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interlink Electronics and Maris Tech 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 Maris Tech are associated (or correlated) with Interlink Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interlink Electronics has no effect on the direction of Maris Tech i.e., Maris Tech and Interlink Electronics go up and down completely randomly.

Pair Corralation between Maris Tech and Interlink Electronics

Given the investment horizon of 90 days Maris Tech is expected to generate 1.71 times less return on investment than Interlink Electronics. But when comparing it to its historical volatility, Maris Tech is 1.31 times less risky than Interlink Electronics. It trades about 0.05 of its potential returns per unit of risk. Interlink Electronics is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  600.00  in Interlink Electronics on May 5, 2025 and sell it today you would earn a total of  103.00  from holding Interlink Electronics or generate 17.17% return on investment over 90 days.

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

Maris Tech  vs.  Interlink Electronics

Maris Tech

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Maris Tech are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite abnormal technical and fundamental indicators, Maris Tech disclosed solid returns over the last few months and may actually be approaching a breakup point.

Interlink Electronics

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Interlink Electronics are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain basic indicators, Interlink Electronics disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Maris Tech and Interlink Electronics

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

The idea behind Maris Tech and Interlink 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.