Correlation Between Celestica and Amphenol
Can any of the company-specific risk be diversified away by investing in both Celestica and Amphenol 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 Celestica and Amphenol into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celestica and Amphenol, you can compare the effects of market volatilities on Celestica and Amphenol 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 Celestica with a short position of Amphenol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celestica and Amphenol.
Diversification Opportunities for Celestica and Amphenol
Almost no diversification
The 3 months correlation between Celestica and Amphenol is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Celestica and Amphenol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amphenol and Celestica 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 Celestica are associated (or correlated) with Amphenol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amphenol has no effect on the direction of Celestica i.e., Celestica and Amphenol go up and down completely randomly.
Pair Corralation between Celestica and Amphenol
Considering the 90-day investment horizon Celestica is expected to under-perform the Amphenol. In addition to that, Celestica is 2.38 times more volatile than Amphenol. It trades about -0.06 of its total potential returns per unit of risk. Amphenol is currently generating about 0.1 per unit of volatility. If you would invest 11,334 in Amphenol on January 26, 2024 and sell it today you would earn a total of 297.00 from holding Amphenol or generate 2.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celestica vs. Amphenol
Performance |
| Timeline |
| Celestica |
| Amphenol |
Celestica and Amphenol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celestica and Amphenol
The main advantage of trading using opposite Celestica and Amphenol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celestica position performs unexpectedly, Amphenol 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 Amphenol will offset losses from the drop in Amphenol's long position.| Celestica vs. Plexus Corp | Celestica vs. Benchmark Electronics | Celestica vs. Flex | Celestica vs. Jabil Circuit |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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