Correlation Between Amphenol and Sanmina
Can any of the company-specific risk be diversified away by investing in both Amphenol and Sanmina 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 Amphenol and Sanmina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amphenol and Sanmina, you can compare the effects of market volatilities on Amphenol and Sanmina 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 Amphenol with a short position of Sanmina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amphenol and Sanmina.
Diversification Opportunities for Amphenol and Sanmina
Almost no diversification
The 3 months correlation between Amphenol and Sanmina is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Amphenol and Sanmina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanmina and Amphenol 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 Amphenol are associated (or correlated) with Sanmina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanmina has no effect on the direction of Amphenol i.e., Amphenol and Sanmina go up and down completely randomly.
Pair Corralation between Amphenol and Sanmina
Assuming the 90 days horizon Amphenol is expected to generate 2.52 times less return on investment than Sanmina. In addition to that, Amphenol is 1.18 times more volatile than Sanmina. It trades about 0.05 of its total potential returns per unit of risk. Sanmina is currently generating about 0.15 per unit of volatility. 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 Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Amphenol vs. Sanmina
Performance |
| Timeline |
| Amphenol |
| Sanmina |
Amphenol and Sanmina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amphenol and Sanmina
The main advantage of trading using opposite Amphenol and Sanmina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amphenol position performs unexpectedly, Sanmina 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 Sanmina will offset losses from the drop in Sanmina's long position.| Amphenol vs. GOLD ROAD RES | Amphenol vs. QUEEN S ROAD | Amphenol vs. Fukuyama Transporting Co | Amphenol vs. PennyMac Mortgage Investment |
| Sanmina vs. Tradegate AG Wertpapierhandelsbank | Sanmina vs. NISSAN CHEMICAL IND | Sanmina vs. KINGBOARD CHEMICAL | Sanmina vs. FAST RETAIL ADR |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |