Correlation Between Celestica and TARGET
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By analyzing existing cross correlation between Celestica and TARGET P 65, you can compare the effects of market volatilities on Celestica and TARGET 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 TARGET. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celestica and TARGET.
Diversification Opportunities for Celestica and TARGET
Excellent diversification
The 3 months correlation between Celestica and TARGET is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Celestica and TARGET P 65 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TARGET P 65 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 TARGET. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TARGET P 65 has no effect on the direction of Celestica i.e., Celestica and TARGET go up and down completely randomly.
Pair Corralation between Celestica and TARGET
Considering the 90-day investment horizon Celestica is expected to generate 29.28 times less return on investment than TARGET. But when comparing it to its historical volatility, Celestica is 37.57 times less risky than TARGET. It trades about 0.15 of its potential returns per unit of risk. TARGET P 65 is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 11,450 in TARGET P 65 on November 2, 2024 and sell it today you would earn a total of 272.00 from holding TARGET P 65 or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 36.44% |
| Values | Daily Returns |
Celestica vs. TARGET P 65
Performance |
| Timeline |
| Celestica |
| TARGET P 65 |
Celestica and TARGET Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celestica and TARGET
The main advantage of trading using opposite Celestica and TARGET positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celestica position performs unexpectedly, TARGET 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 TARGET will offset losses from the drop in TARGET's long position.| Celestica vs. Plexus Corp | Celestica vs. Benchmark Electronics | Celestica vs. Flex | Celestica vs. Jabil Circuit |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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