Correlation Between YAOKO and Sanmina
Can any of the company-specific risk be diversified away by investing in both YAOKO and Sanmina 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 YAOKO and Sanmina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YAOKO LTD and Sanmina, you can compare the effects of market volatilities on YAOKO and Sanmina 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 YAOKO with a short position of Sanmina. Check out your portfolio center. Please also check ongoing floating volatility patterns of YAOKO and Sanmina.
Diversification Opportunities for YAOKO and Sanmina
Very good diversification
The 3 months correlation between YAOKO and Sanmina is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding YAOKO LTD and Sanmina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanmina and YAOKO 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 YAOKO LTD are associated (or correlated) with Sanmina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanmina has no effect on the direction of YAOKO i.e., YAOKO and Sanmina go up and down completely randomly.
Pair Corralation between YAOKO and Sanmina
Assuming the 90 days horizon YAOKO is expected to generate 2.33 times less return on investment than Sanmina. In addition to that, YAOKO is 1.12 times more volatile than Sanmina. It trades about 0.06 of its total potential returns per unit of risk. Sanmina is currently generating about 0.15 per unit of volatility. If you would invest 7,398 in Sanmina on September 14, 2024 and sell it today you would earn a total of 320.00 from holding Sanmina or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
YAOKO LTD vs. Sanmina
Performance |
| Timeline |
| YAOKO LTD |
| Sanmina |
YAOKO and Sanmina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YAOKO and Sanmina
The main advantage of trading using opposite YAOKO and Sanmina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YAOKO position performs unexpectedly, Sanmina 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 Sanmina will offset losses from the drop in Sanmina's long position.| YAOKO vs. Woolworths Group Limited | YAOKO vs. Loblaw Companies Limited | YAOKO vs. Superior Plus Corp | YAOKO vs. SIVERS SEMICONDUCTORS AB |
| Sanmina vs. Tradegate AG Wertpapierhandelsbank | Sanmina vs. NISSAN CHEMICAL IND | Sanmina vs. KINGBOARD CHEMICAL | Sanmina vs. FAST RETAIL ADR |
Check out your portfolio center.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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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