Correlation Between MAVEN WIRELESS and Sanmina
Can any of the company-specific risk be diversified away by investing in both MAVEN WIRELESS 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 MAVEN WIRELESS and Sanmina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAVEN WIRELESS SWEDEN and Sanmina, you can compare the effects of market volatilities on MAVEN WIRELESS 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 MAVEN WIRELESS with a short position of Sanmina. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAVEN WIRELESS and Sanmina.
Diversification Opportunities for MAVEN WIRELESS and Sanmina
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAVEN and Sanmina is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding MAVEN WIRELESS SWEDEN and Sanmina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanmina and MAVEN WIRELESS 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 MAVEN WIRELESS SWEDEN 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 MAVEN WIRELESS i.e., MAVEN WIRELESS and Sanmina go up and down completely randomly.
Pair Corralation between MAVEN WIRELESS and Sanmina
Assuming the 90 days horizon MAVEN WIRELESS SWEDEN is expected to under-perform the Sanmina. In addition to that, MAVEN WIRELESS is 1.07 times more volatile than Sanmina. It trades about -0.11 of its total potential returns per unit of risk. Sanmina is currently generating about 0.17 per unit of volatility. If you would invest 5,872 in Sanmina on September 12, 2024 and sell it today you would earn a total of 1,598 from holding Sanmina or generate 27.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
MAVEN WIRELESS SWEDEN vs. Sanmina
Performance |
| Timeline |
| MAVEN WIRELESS SWEDEN |
| Sanmina |
MAVEN WIRELESS and Sanmina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAVEN WIRELESS and Sanmina
The main advantage of trading using opposite MAVEN WIRELESS and Sanmina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAVEN WIRELESS 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.| MAVEN WIRELESS vs. Superior Plus Corp | MAVEN WIRELESS vs. SIVERS SEMICONDUCTORS AB | MAVEN WIRELESS vs. Norsk Hydro ASA | MAVEN WIRELESS vs. Reliance Steel Aluminum |
| Sanmina vs. SEI INVESTMENTS | Sanmina vs. New Residential Investment | Sanmina vs. MAVEN WIRELESS SWEDEN | Sanmina vs. REINET INVESTMENTS SCA |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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