Correlation Between Sanmina and BW OFFSHORE
Can any of the company-specific risk be diversified away by investing in both Sanmina and BW OFFSHORE 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 BW OFFSHORE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sanmina and BW OFFSHORE LTD, you can compare the effects of market volatilities on Sanmina and BW OFFSHORE 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 BW OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanmina and BW OFFSHORE.
Diversification Opportunities for Sanmina and BW OFFSHORE
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sanmina and XY81 is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Sanmina and BW OFFSHORE LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BW OFFSHORE LTD 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 BW OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BW OFFSHORE LTD has no effect on the direction of Sanmina i.e., Sanmina and BW OFFSHORE go up and down completely randomly.
Pair Corralation between Sanmina and BW OFFSHORE
Assuming the 90 days trading horizon Sanmina is expected to generate 1.0 times less return on investment than BW OFFSHORE. In addition to that, Sanmina is 1.02 times more volatile than BW OFFSHORE LTD. It trades about 0.04 of its total potential returns per unit of risk. BW OFFSHORE LTD is currently generating about 0.04 per unit of volatility. If you would invest 197.00 in BW OFFSHORE LTD on October 9, 2024 and sell it today you would earn a total of 66.00 from holding BW OFFSHORE LTD or generate 33.5% 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. BW OFFSHORE LTD
Performance |
| Timeline |
| Sanmina |
| BW OFFSHORE LTD |
Sanmina and BW OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanmina and BW OFFSHORE
The main advantage of trading using opposite Sanmina and BW OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanmina position performs unexpectedly, BW OFFSHORE 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 BW OFFSHORE will offset losses from the drop in BW OFFSHORE's long position.| Sanmina vs. Richardson Electronics | Sanmina vs. Hanison Construction Holdings | Sanmina vs. GEAR4MUSIC LS 10 | Sanmina vs. LPKF Laser Electronics |
| BW OFFSHORE vs. INTERCONT HOTELS | BW OFFSHORE vs. Choice Hotels International | BW OFFSHORE vs. Pebblebrook Hotel Trust | BW OFFSHORE vs. MCEWEN MINING 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |