Correlation Between MicroCloud Hologram and Sanmina

Can any of the company-specific risk be diversified away by investing in both MicroCloud Hologram 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 MicroCloud Hologram and Sanmina into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MicroCloud Hologram and Sanmina, you can compare the effects of market volatilities on MicroCloud Hologram 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 MicroCloud Hologram with a short position of Sanmina. Check out your portfolio center. Please also check ongoing floating volatility patterns of MicroCloud Hologram and Sanmina.

Diversification Opportunities for MicroCloud Hologram and Sanmina

0.13

Correlation Coefficient

MicroCloud Hologram  Sanmina

Average diversification

The 3 months correlation between MicroCloud and Sanmina is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding MicroCloud Hologram and Sanmina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanmina and MicroCloud Hologram 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 MicroCloud Hologram 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 MicroCloud Hologram i.e., MicroCloud Hologram and Sanmina go up and down completely randomly.

Pair Corralation between MicroCloud Hologram and Sanmina

Assuming the 90 days horizon MicroCloud Hologram is expected to under-perform the Sanmina. In addition to that, MicroCloud Hologram is 4.23 times more volatile than Sanmina. It trades about -0.03 of its total potential returns per unit of risk. Sanmina is currently generating about -0.04 per unit of volatility. If you would invest  9,014  in Sanmina on February 18, 2025 and sell it today you would lose (877.00) from holding Sanmina or give up 9.73% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

MicroCloud Hologram  vs.  Sanmina

MicroCloud Hologram

Risk-Adjusted Performance

Very Weak

Over the last 90 days MicroCloud Hologram has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in June 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Sanmina

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sanmina has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with MicroCloud Hologram and Sanmina

The main advantage of trading using opposite MicroCloud Hologram and Sanmina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MicroCloud Hologram 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.

The idea behind MicroCloud Hologram and Sanmina pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Positions Ratings module to 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.