Correlation Between RETAIL FOOD and Sanmina
Can any of the company-specific risk be diversified away by investing in both RETAIL FOOD 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 RETAIL FOOD and Sanmina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RETAIL FOOD GROUP and Sanmina, you can compare the effects of market volatilities on RETAIL FOOD 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 RETAIL FOOD with a short position of Sanmina. Check out your portfolio center. Please also check ongoing floating volatility patterns of RETAIL FOOD and Sanmina.
Diversification Opportunities for RETAIL FOOD and Sanmina
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between RETAIL and Sanmina is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding RETAIL FOOD GROUP and Sanmina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanmina and RETAIL FOOD 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 RETAIL FOOD GROUP 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 RETAIL FOOD i.e., RETAIL FOOD and Sanmina go up and down completely randomly.
Pair Corralation between RETAIL FOOD and Sanmina
Assuming the 90 days trading horizon RETAIL FOOD GROUP is expected to under-perform the Sanmina. In addition to that, RETAIL FOOD is 1.67 times more volatile than Sanmina. It trades about -0.19 of its total potential returns per unit of risk. Sanmina is currently generating about 0.19 per unit of volatility. If you would invest 7,362 in Sanmina on November 4, 2024 and sell it today you would earn a total of 658.00 from holding Sanmina or generate 8.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RETAIL FOOD GROUP vs. Sanmina
Performance |
| Timeline |
| RETAIL FOOD GROUP |
| Sanmina |
RETAIL FOOD and Sanmina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RETAIL FOOD and Sanmina
The main advantage of trading using opposite RETAIL FOOD and Sanmina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RETAIL FOOD 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.| RETAIL FOOD vs. WESANA HEALTH HOLD | RETAIL FOOD vs. PURETECH HEALTH PLC | RETAIL FOOD vs. Verizon Communications | RETAIL FOOD vs. Molina Healthcare |
| Sanmina vs. SANOK RUBBER ZY | Sanmina vs. UNITED UTILITIES GR | Sanmina vs. Mitsubishi Materials | Sanmina vs. Osisko Metals |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |