Correlation Between Allied Motion and Sanmina
Can any of the company-specific risk be diversified away by investing in both Allied Motion 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 Allied Motion and Sanmina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allied Motion Technologies and Sanmina, you can compare the effects of market volatilities on Allied Motion 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 Allied Motion with a short position of Sanmina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allied Motion and Sanmina.
Diversification Opportunities for Allied Motion and Sanmina
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Allied and Sanmina is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Allied Motion Technologies and Sanmina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanmina and Allied Motion 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 Allied Motion Technologies 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 Allied Motion i.e., Allied Motion and Sanmina go up and down completely randomly.
Pair Corralation between Allied Motion and Sanmina
If you would invest 6,540 in Sanmina on August 24, 2024 and sell it today you would earn a total of 1,412 from holding Sanmina or generate 21.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Allied Motion Technologies vs. Sanmina
Performance |
| Timeline |
| Allied Motion Techno |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sanmina |
Allied Motion and Sanmina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allied Motion and Sanmina
The main advantage of trading using opposite Allied Motion and Sanmina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allied Motion 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.| Allied Motion vs. Plexus Corp | Allied Motion vs. Sanmina | Allied Motion vs. Bel Fuse A | Allied Motion vs. Methode Electronics |
| Sanmina vs. Benchmark Electronics | Sanmina vs. Methode Electronics | Sanmina vs. OSI Systems | Sanmina vs. Celestica |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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