Correlation Between NCR Voyix and Sanmina

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

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

Diversification Opportunities for NCR Voyix and Sanmina

0.86

Correlation Coefficient

NCR Voyix  Sanmina

Very poor diversification

The 3 months correlation between NCR and Sanmina is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding NCR Voyix and Sanmina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanmina and NCR Voyix 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 NCR Voyix 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 NCR Voyix i.e., NCR Voyix and Sanmina go up and down completely randomly.

Pair Corralation between NCR Voyix and Sanmina

Considering the 90-day investment horizon NCR Voyix is expected to generate 0.87 times more return on investment than Sanmina. However, NCR Voyix is 1.14 times less risky than Sanmina. It trades about 0.23 of its potential returns per unit of risk. Sanmina is currently generating about 0.18 per unit of risk. If you would invest  866.00  in NCR Voyix on May 6, 2025 and sell it today you would earn a total of  428.00  from holding NCR Voyix or generate 49.42% return on investment over 90 days.

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

NCR Voyix  vs.  Sanmina

NCR Voyix

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in NCR Voyix are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, NCR Voyix showed solid returns over the last few months and may actually be approaching a breakup point.

Sanmina

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sanmina are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, Sanmina displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with NCR Voyix and Sanmina

The main advantage of trading using opposite NCR Voyix and Sanmina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NCR Voyix 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 NCR Voyix 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.