Correlation Between Sanmina and Satellogic Warrant
Can any of the company-specific risk be diversified away by investing in both Sanmina and Satellogic Warrant 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 Satellogic Warrant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sanmina and Satellogic Warrant, you can compare the effects of market volatilities on Sanmina and Satellogic Warrant 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 Satellogic Warrant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanmina and Satellogic Warrant.
Diversification Opportunities for Sanmina and Satellogic Warrant
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sanmina and Satellogic is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Sanmina and Satellogic Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satellogic Warrant 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 Satellogic Warrant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Satellogic Warrant has no effect on the direction of Sanmina i.e., Sanmina and Satellogic Warrant go up and down completely randomly.
Pair Corralation between Sanmina and Satellogic Warrant
Given the investment horizon of 90 days Sanmina is expected to generate 247.66 times less return on investment than Satellogic Warrant. But when comparing it to its historical volatility, Sanmina is 56.71 times less risky than Satellogic Warrant. It trades about 0.03 of its potential returns per unit of risk. Satellogic Warrant is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 22.00 in Satellogic Warrant on August 30, 2024 and sell it today you would lose (13.02) from holding Satellogic Warrant or give up 59.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 54.64% |
| Values | Daily Returns |
Sanmina vs. Satellogic Warrant
Performance |
| Timeline |
| Sanmina |
| Satellogic Warrant |
Sanmina and Satellogic Warrant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanmina and Satellogic Warrant
The main advantage of trading using opposite Sanmina and Satellogic Warrant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanmina position performs unexpectedly, Satellogic Warrant 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 Satellogic Warrant will offset losses from the drop in Satellogic Warrant's long position.| Sanmina vs. Benchmark Electronics | Sanmina vs. Methode Electronics | Sanmina vs. OSI Systems | Sanmina vs. Celestica |
| Satellogic Warrant vs. Satellogic V | Satellogic Warrant vs. Revelation Biosciences | Satellogic Warrant vs. Cepton Inc |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |