Correlation Between Sanmina and PT Global
Can any of the company-specific risk be diversified away by investing in both Sanmina and PT Global 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 PT Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sanmina and PT Global Mediacom, you can compare the effects of market volatilities on Sanmina and PT Global 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 PT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanmina and PT Global.
Diversification Opportunities for Sanmina and PT Global
Very good diversification
The 3 months correlation between Sanmina and 06L is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Sanmina and PT Global Mediacom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Global Mediacom 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 PT Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Global Mediacom has no effect on the direction of Sanmina i.e., Sanmina and PT Global go up and down completely randomly.
Pair Corralation between Sanmina and PT Global
Assuming the 90 days trading horizon Sanmina is expected to generate 0.58 times more return on investment than PT Global. However, Sanmina is 1.72 times less risky than PT Global. It trades about 0.14 of its potential returns per unit of risk. PT Global Mediacom is currently generating about -0.09 per unit of risk. If you would invest 6,638 in Sanmina on November 2, 2024 and sell it today you would earn a total of 1,440 from holding Sanmina or generate 21.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sanmina vs. PT Global Mediacom
Performance |
| Timeline |
| Sanmina |
| PT Global Mediacom |
Sanmina and PT Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanmina and PT Global
The main advantage of trading using opposite Sanmina and PT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanmina position performs unexpectedly, PT Global 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 PT Global will offset losses from the drop in PT Global's long position.| Sanmina vs. Zijin Mining Group | Sanmina vs. THAI BEVERAGE | Sanmina vs. De Grey Mining | Sanmina vs. NorAm Drilling AS |
| PT Global vs. DICKER DATA LTD | PT Global vs. Zoom Video Communications | PT Global vs. Teradata Corp | PT Global vs. China Communications Services |
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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