Correlation Between Integrated Media and Sanmina
Can any of the company-specific risk be diversified away by investing in both Integrated Media 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 Integrated Media and Sanmina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integrated Media Technology and Sanmina, you can compare the effects of market volatilities on Integrated Media 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 Integrated Media with a short position of Sanmina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Media and Sanmina.
Diversification Opportunities for Integrated Media and Sanmina
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Integrated and Sanmina is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Media Technology and Sanmina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanmina and Integrated Media 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 Integrated Media Technology 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 Integrated Media i.e., Integrated Media and Sanmina go up and down completely randomly.
Pair Corralation between Integrated Media and Sanmina
Given the investment horizon of 90 days Integrated Media is expected to generate 4.72 times less return on investment than Sanmina. In addition to that, Integrated Media is 2.41 times more volatile than Sanmina. It trades about 0.02 of its total potential returns per unit of risk. Sanmina is currently generating about 0.26 per unit of volatility. If you would invest 7,547 in Sanmina on November 3, 2024 and sell it today you would earn a total of 826.00 from holding Sanmina or generate 10.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integrated Media Technology vs. Sanmina
Performance |
| Timeline |
| Integrated Media Tec |
| Sanmina |
Integrated Media and Sanmina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Media and Sanmina
The main advantage of trading using opposite Integrated Media and Sanmina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Media 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.| Integrated Media vs. SigmaTron International | Integrated Media vs. Data IO | Integrated Media vs. Research Frontiers Incorporated | Integrated Media vs. Maris Tech |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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