Correlation Between Pegasus Tel and Worthington Industries

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

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

Diversification Opportunities for Pegasus Tel and Worthington Industries

0.12

Correlation Coefficient

Pegasus Tel  Worthington Industries

Average diversification

The 3 months correlation between Pegasus and Worthington is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Pegasus Tel and Worthington Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Worthington Industries and Pegasus Tel 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 Pegasus Tel are associated (or correlated) with Worthington Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Worthington Industries has no effect on the direction of Pegasus Tel i.e., Pegasus Tel and Worthington Industries go up and down completely randomly.

Pair Corralation between Pegasus Tel and Worthington Industries

Given the investment horizon of 90 days Pegasus Tel is expected to generate 8.09 times more return on investment than Worthington Industries. However, Pegasus Tel is 8.09 times more volatile than Worthington Industries. It trades about 0.11 of its potential returns per unit of risk. Worthington Industries is currently generating about 0.13 per unit of risk. If you would invest  0.24  in Pegasus Tel on May 7, 2025 and sell it today you would earn a total of  0.11  from holding Pegasus Tel or generate 45.83% return on investment over 90 days.

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

Pegasus Tel  vs.  Worthington Industries

Pegasus Tel

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Pegasus Tel are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite weak technical and fundamental indicators, Pegasus Tel disclosed solid returns over the last few months and may actually be approaching a breakup point.

Worthington Industries

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Worthington Industries are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, Worthington Industries may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Pegasus Tel and Worthington Industries

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

The idea behind Pegasus Tel and Worthington Industries 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.