Correlation Between Murata Manufacturing and Sanmina
Can any of the company-specific risk be diversified away by investing in both Murata Manufacturing 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 Murata Manufacturing and Sanmina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Murata Manufacturing Co and Sanmina, you can compare the effects of market volatilities on Murata Manufacturing 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 Murata Manufacturing with a short position of Sanmina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Murata Manufacturing and Sanmina.
Diversification Opportunities for Murata Manufacturing and Sanmina
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Murata and Sanmina is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Murata Manufacturing Co and Sanmina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanmina and Murata Manufacturing 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 Murata Manufacturing Co 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 Murata Manufacturing i.e., Murata Manufacturing and Sanmina go up and down completely randomly.
Pair Corralation between Murata Manufacturing and Sanmina
Assuming the 90 days trading horizon Murata Manufacturing Co is expected to generate 1.08 times more return on investment than Sanmina. However, Murata Manufacturing is 1.08 times more volatile than Sanmina. It trades about 0.23 of its potential returns per unit of risk. Sanmina is currently generating about -0.02 per unit of risk. If you would invest 1,486 in Murata Manufacturing Co on December 4, 2024 and sell it today you would earn a total of 149.00 from holding Murata Manufacturing Co or generate 10.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Murata Manufacturing Co vs. Sanmina
Performance |
| Timeline |
| Murata Manufacturing |
| Sanmina |
Murata Manufacturing and Sanmina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Murata Manufacturing and Sanmina
The main advantage of trading using opposite Murata Manufacturing and Sanmina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Murata Manufacturing 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.| Murata Manufacturing vs. Cairo Communication SpA | Murata Manufacturing vs. GMO INTERNET | Murata Manufacturing vs. Yunnan Water Investment | Murata Manufacturing vs. Computershare Limited |
| Sanmina vs. Federal Agricultural Mortgage | Sanmina vs. Cairo Communication SpA | Sanmina vs. Chengdu PUTIAN Telecommunications | Sanmina vs. GEELY AUTOMOBILE |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |