Correlation Between Standex International and ATS

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

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

Diversification Opportunities for Standex International and ATS

-0.15

Correlation Coefficient

Standex International  ATS

Good diversification

The 3 months correlation between Standex and ATS is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Standex International and ATS Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATS Corporation and Standex International 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 Standex International are associated (or correlated) with ATS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATS Corporation has no effect on the direction of Standex International i.e., Standex International and ATS go up and down completely randomly.

Pair Corralation between Standex International and ATS

Considering the 90-day investment horizon Standex International is expected to generate 0.87 times more return on investment than ATS. However, Standex International is 1.15 times less risky than ATS. It trades about 0.15 of its potential returns per unit of risk. ATS Corporation is currently generating about 0.01 per unit of risk. If you would invest  20,813  in Standex International on September 13, 2025 and sell it today you would earn a total of  4,081  from holding Standex International or generate 19.61% return on investment over 90 days.

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

Standex International  vs.  ATS Corp.

Standex International

Risk-Adjusted Performance

Good

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

ATS Corporation

Risk-Adjusted Performance

Weak

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

Pair Trading with Standex International and ATS

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

The idea behind Standex International and ATS Corporation 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 Commodity Directory module to find actively traded commodities issued by global exchanges.