Correlation Between Celestica and Sumitomo Mitsui
Can any of the company-specific risk be diversified away by investing in both Celestica and Sumitomo Mitsui 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 Celestica and Sumitomo Mitsui into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celestica and Sumitomo Mitsui Financial, you can compare the effects of market volatilities on Celestica and Sumitomo Mitsui 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 Celestica with a short position of Sumitomo Mitsui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celestica and Sumitomo Mitsui.
Diversification Opportunities for Celestica and Sumitomo Mitsui
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Celestica and Sumitomo is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Celestica and Sumitomo Mitsui Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sumitomo Mitsui Financial and Celestica 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 Celestica are associated (or correlated) with Sumitomo Mitsui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sumitomo Mitsui Financial has no effect on the direction of Celestica i.e., Celestica and Sumitomo Mitsui go up and down completely randomly.
Pair Corralation between Celestica and Sumitomo Mitsui
Considering the 90-day investment horizon Celestica is expected to generate 0.93 times more return on investment than Sumitomo Mitsui. However, Celestica is 1.07 times less risky than Sumitomo Mitsui. It trades about 0.5 of its potential returns per unit of risk. Sumitomo Mitsui Financial is currently generating about 0.1 per unit of risk. If you would invest 5,747 in Celestica on August 24, 2024 and sell it today you would earn a total of 3,397 from holding Celestica or generate 59.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celestica vs. Sumitomo Mitsui Financial
Performance |
| Timeline |
| Celestica |
| Sumitomo Mitsui Financial |
Celestica and Sumitomo Mitsui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celestica and Sumitomo Mitsui
The main advantage of trading using opposite Celestica and Sumitomo Mitsui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celestica position performs unexpectedly, Sumitomo Mitsui 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 Sumitomo Mitsui will offset losses from the drop in Sumitomo Mitsui's long position.| Celestica vs. Plexus Corp | Celestica vs. Benchmark Electronics | Celestica vs. Flex | Celestica vs. Jabil Circuit |
| Sumitomo Mitsui vs. Svenska Handelsbanken PK | Sumitomo Mitsui vs. ANZ Group Holdings | Sumitomo Mitsui vs. Westpac Banking | Sumitomo Mitsui vs. National Australia Bank |
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..
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |