Correlation Between Super Micro and Celestica
Can any of the company-specific risk be diversified away by investing in both Super Micro and Celestica 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 Super Micro and Celestica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Super Micro Computer and Celestica, you can compare the effects of market volatilities on Super Micro and Celestica 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 Super Micro with a short position of Celestica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Micro and Celestica.
Diversification Opportunities for Super Micro and Celestica
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Super and Celestica is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Super Micro Computer and Celestica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celestica and Super Micro 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 Super Micro Computer are associated (or correlated) with Celestica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celestica has no effect on the direction of Super Micro i.e., Super Micro and Celestica go up and down completely randomly.
Pair Corralation between Super Micro and Celestica
Given the investment horizon of 90 days Super Micro Computer is expected to under-perform the Celestica. In addition to that, Super Micro is 2.78 times more volatile than Celestica. It trades about -0.02 of its total potential returns per unit of risk. Celestica is currently generating about 0.3 per unit of volatility. If you would invest 5,668 in Celestica on September 19, 2024 and sell it today you would earn a total of 3,543 from holding Celestica or generate 62.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
Super Micro Computer vs. Celestica
Performance |
| Timeline |
| Super Micro Computer |
| Celestica |
Super Micro and Celestica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Super Micro and Celestica
The main advantage of trading using opposite Super Micro and Celestica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Super Micro position performs unexpectedly, Celestica 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 Celestica will offset losses from the drop in Celestica's long position.| Super Micro vs. D Wave Quantum | Super Micro vs. Rigetti Computing | Super Micro vs. Cricut Inc | Super Micro vs. Quantum Computing |
| Celestica vs. IONQ Inc | Celestica vs. Quantum | Celestica vs. Super Micro Computer | Celestica vs. Red Cat Holdings |
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
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Transaction History View history of all your transactions and understand their impact on performance |