Correlation Between Celestica and SEAGATE

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Celestica and SEAGATE 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 SEAGATE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celestica and SEAGATE HDD CAYMAN, you can compare the effects of market volatilities on Celestica and SEAGATE 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 SEAGATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celestica and SEAGATE.

Diversification Opportunities for Celestica and SEAGATE

0.04
  Correlation Coefficient

Significant diversification

The 3 months correlation between Celestica and SEAGATE is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Celestica and SEAGATE HDD CAYMAN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEAGATE HDD CAYMAN 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 SEAGATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEAGATE HDD CAYMAN has no effect on the direction of Celestica i.e., Celestica and SEAGATE go up and down completely randomly.

Pair Corralation between Celestica and SEAGATE

Considering the 90-day investment horizon Celestica is expected to generate 3.88 times more return on investment than SEAGATE. However, Celestica is 3.88 times more volatile than SEAGATE HDD CAYMAN. It trades about 0.15 of its potential returns per unit of risk. SEAGATE HDD CAYMAN is currently generating about 0.01 per unit of risk. If you would invest  1,360  in Celestica on November 2, 2024 and sell it today you would earn a total of  11,354  from holding Celestica or generate 834.85% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Celestica  vs.  SEAGATE HDD CAYMAN

 Performance 
       Timeline  
Celestica 

Risk-Adjusted Performance

13 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Celestica are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain essential indicators, Celestica unveiled solid returns over the last few months and may actually be approaching a breakup point.
SEAGATE HDD CAYMAN 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days SEAGATE HDD CAYMAN has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, SEAGATE is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Celestica and SEAGATE Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Celestica and SEAGATE

The main advantage of trading using opposite Celestica and SEAGATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celestica position performs unexpectedly, SEAGATE 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 SEAGATE will offset losses from the drop in SEAGATE's long position.
Celestica vs. Plexus Corp
Celestica vs. Benchmark Electronics
Celestica vs. Flex
Celestica vs. Jabil Circuit
The idea behind Celestica and SEAGATE HDD CAYMAN 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.
SEAGATE vs. Teleflex Incorporated
SEAGATE vs. LENSAR Inc
SEAGATE vs. Amgen Inc
SEAGATE vs. Exchange Bankshares
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.

Other Complementary Tools

USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY