Correlation Between Richardson Electronics and Celestica
Can any of the company-specific risk be diversified away by investing in both Richardson Electronics 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 Richardson Electronics and Celestica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Richardson Electronics and Celestica, you can compare the effects of market volatilities on Richardson Electronics 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 Richardson Electronics with a short position of Celestica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Richardson Electronics and Celestica.
Diversification Opportunities for Richardson Electronics and Celestica
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Richardson and Celestica is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Richardson Electronics and Celestica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celestica and Richardson Electronics 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 Richardson Electronics 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 Richardson Electronics i.e., Richardson Electronics and Celestica go up and down completely randomly.
Pair Corralation between Richardson Electronics and Celestica
Given the investment horizon of 90 days Richardson Electronics is expected to generate 15.33 times less return on investment than Celestica. But when comparing it to its historical volatility, Richardson Electronics is 1.34 times less risky than Celestica. It trades about 0.03 of its potential returns per unit of risk. Celestica is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 12,769 in Celestica on June 11, 2025 and sell it today you would earn a total of 11,639 from holding Celestica or generate 91.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Richardson Electronics vs. Celestica
Performance |
| Timeline |
| Richardson Electronics |
| Celestica |
Richardson Electronics and Celestica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Richardson Electronics and Celestica
The main advantage of trading using opposite Richardson Electronics and Celestica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Richardson Electronics 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.| Richardson Electronics vs. Bel Fuse B | Richardson Electronics vs. Benchmark Electronics | Richardson Electronics vs. Bel Fuse A | Richardson Electronics vs. Plexus Corp |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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