Correlation Between Worthington Industries and Pegasus Tel

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

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

Diversification Opportunities for Worthington Industries and Pegasus Tel

0.2

Correlation Coefficient

Worthington Industries  Pegasus Tel

Modest diversification

The 3 months correlation between Worthington and Pegasus is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Worthington Industries and Pegasus Tel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pegasus Tel and Worthington Industries 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 Worthington Industries are associated (or correlated) with Pegasus Tel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pegasus Tel has no effect on the direction of Worthington Industries i.e., Worthington Industries and Pegasus Tel go up and down completely randomly.

Pair Corralation between Worthington Industries and Pegasus Tel

Considering the 90-day investment horizon Worthington Industries is expected to generate 6.68 times less return on investment than Pegasus Tel. But when comparing it to its historical volatility, Worthington Industries is 8.15 times less risky than Pegasus Tel. It trades about 0.13 of its potential returns per unit of risk. Pegasus Tel is currently generating about 0.11 of returns per unit of risk over similar time horizon. 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	Very Weak
Accuracy	98.39%
Values	Daily Returns

Worthington Industries  vs.  Pegasus Tel

Worthington Industries

Risk-Adjusted Performance

Fair

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.

Pegasus Tel

Risk-Adjusted Performance

Fair

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.

Pair Trading with Worthington Industries and Pegasus Tel

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

The idea behind Worthington Industries and Pegasus Tel 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.