Correlation Between Sanmina and Corning Incorporated
Can any of the company-specific risk be diversified away by investing in both Sanmina and Corning Incorporated 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 Corning Incorporated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sanmina and Corning Incorporated, you can compare the effects of market volatilities on Sanmina and Corning Incorporated 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 Corning Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanmina and Corning Incorporated.
Diversification Opportunities for Sanmina and Corning Incorporated
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sanmina and Corning is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Sanmina and Corning Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corning Incorporated 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 Corning Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corning Incorporated has no effect on the direction of Sanmina i.e., Sanmina and Corning Incorporated go up and down completely randomly.
Pair Corralation between Sanmina and Corning Incorporated
Given the investment horizon of 90 days Sanmina is expected to generate 1.81 times less return on investment than Corning Incorporated. In addition to that, Sanmina is 1.18 times more volatile than Corning Incorporated. It trades about 0.06 of its total potential returns per unit of risk. Corning Incorporated is currently generating about 0.13 per unit of volatility. If you would invest 3,622 in Corning Incorporated on August 28, 2024 and sell it today you would earn a total of 1,204 from holding Corning Incorporated or generate 33.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sanmina vs. Corning Incorporated
Performance |
| Timeline |
| Sanmina |
| Corning Incorporated |
Sanmina and Corning Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanmina and Corning Incorporated
The main advantage of trading using opposite Sanmina and Corning Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanmina position performs unexpectedly, Corning Incorporated 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 Corning Incorporated will offset losses from the drop in Corning Incorporated's long position.| Sanmina vs. Benchmark Electronics | Sanmina vs. Methode Electronics | Sanmina vs. OSI Systems | Sanmina vs. Celestica |
| Corning Incorporated vs. Jabil Circuit | Corning Incorporated vs. Sanmina | Corning Incorporated vs. Methode Electronics |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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