Correlation Between Sanmina and Tradegate
Can any of the company-specific risk be diversified away by investing in both Sanmina and Tradegate 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 Tradegate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sanmina and Tradegate AG Wertpapierhandelsbank, you can compare the effects of market volatilities on Sanmina and Tradegate 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 Tradegate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanmina and Tradegate.
Diversification Opportunities for Sanmina and Tradegate
Modest diversification
The 3 months correlation between Sanmina and Tradegate is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Sanmina and Tradegate AG Wertpapierhandels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tradegate AG Wertpap 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 Tradegate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tradegate AG Wertpap has no effect on the direction of Sanmina i.e., Sanmina and Tradegate go up and down completely randomly.
Pair Corralation between Sanmina and Tradegate
Assuming the 90 days trading horizon Sanmina is expected to generate 3.25 times more return on investment than Tradegate. However, Sanmina is 3.25 times more volatile than Tradegate AG Wertpapierhandelsbank. It trades about 0.15 of its potential returns per unit of risk. Tradegate AG Wertpapierhandelsbank is currently generating about -0.19 per unit of risk. If you would invest 7,398 in Sanmina on September 14, 2024 and sell it today you would earn a total of 320.00 from holding Sanmina or generate 4.33% 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. Tradegate AG Wertpapierhandels
Performance |
| Timeline |
| Sanmina |
| Tradegate AG Wertpap |
Sanmina and Tradegate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanmina and Tradegate
The main advantage of trading using opposite Sanmina and Tradegate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanmina position performs unexpectedly, Tradegate 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 Tradegate will offset losses from the drop in Tradegate's long position.| Sanmina vs. Tradegate AG Wertpapierhandelsbank | Sanmina vs. NISSAN CHEMICAL IND | Sanmina vs. KINGBOARD CHEMICAL | Sanmina vs. FAST RETAIL ADR |
| Tradegate vs. Superior Plus Corp | Tradegate vs. SIVERS SEMICONDUCTORS AB | Tradegate vs. CHINA HUARONG ENERHD 50 | Tradegate vs. NORDIC HALIBUT AS |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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