Correlation Between Sanmina and Eshallgo
Can any of the company-specific risk be diversified away by investing in both Sanmina and Eshallgo 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 Sanmina and Eshallgo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sanmina and Eshallgo Class A, you can compare the effects of market volatilities on Sanmina and Eshallgo 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 Sanmina with a short position of Eshallgo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanmina and Eshallgo.
Diversification Opportunities for Sanmina and Eshallgo
Weak diversification
The 3 months correlation between Sanmina and Eshallgo is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Sanmina and Eshallgo Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eshallgo Class A and Sanmina 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 Sanmina are associated (or correlated) with Eshallgo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eshallgo Class A has no effect on the direction of Sanmina i.e., Sanmina and Eshallgo go up and down completely randomly.
Pair Corralation between Sanmina and Eshallgo
Given the investment horizon of 90 days Sanmina is expected to generate 0.08 times more return on investment than Eshallgo. However, Sanmina is 12.73 times less risky than Eshallgo. It trades about 0.39 of its potential returns per unit of risk. Eshallgo Class A is currently generating about -0.27 per unit of risk. If you would invest 7,726 in Sanmina on October 23, 2024 and sell it today you would earn a total of 692.00 from holding Sanmina or generate 8.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sanmina vs. Eshallgo Class A
Performance |
| Timeline |
| Sanmina |
| Eshallgo Class A |
Sanmina and Eshallgo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanmina and Eshallgo
The main advantage of trading using opposite Sanmina and Eshallgo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanmina position performs unexpectedly, Eshallgo 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 Eshallgo will offset losses from the drop in Eshallgo's long position.| Sanmina vs. Benchmark Electronics | Sanmina vs. Methode Electronics | Sanmina vs. OSI Systems | Sanmina vs. Celestica |
| Eshallgo vs. Sanmina | Eshallgo vs. Plexus Corp | Eshallgo vs. Benchmark Electronics | Eshallgo vs. Integrated Media Technology |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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