Correlation Between USWE SPORTS and Jabil
Can any of the company-specific risk be diversified away by investing in both USWE SPORTS and Jabil 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 USWE SPORTS and Jabil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between USWE SPORTS AB and Jabil Inc, you can compare the effects of market volatilities on USWE SPORTS and Jabil 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 USWE SPORTS with a short position of Jabil. Check out your portfolio center. Please also check ongoing floating volatility patterns of USWE SPORTS and Jabil.
Diversification Opportunities for USWE SPORTS and Jabil
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between USWE and Jabil is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding USWE SPORTS AB and Jabil Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jabil Inc and USWE SPORTS 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 USWE SPORTS AB are associated (or correlated) with Jabil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jabil Inc has no effect on the direction of USWE SPORTS i.e., USWE SPORTS and Jabil go up and down completely randomly.
Pair Corralation between USWE SPORTS and Jabil
Assuming the 90 days horizon USWE SPORTS is expected to generate 1.58 times less return on investment than Jabil. But when comparing it to its historical volatility, USWE SPORTS AB is 1.08 times less risky than Jabil. It trades about 0.14 of its potential returns per unit of risk. Jabil Inc is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 11,892 in Jabil Inc on September 4, 2024 and sell it today you would earn a total of 1,133 from holding Jabil Inc or generate 9.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
USWE SPORTS AB vs. Jabil Inc
Performance |
| Timeline |
| USWE SPORTS AB |
| Jabil Inc |
USWE SPORTS and Jabil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with USWE SPORTS and Jabil
The main advantage of trading using opposite USWE SPORTS and Jabil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USWE SPORTS position performs unexpectedly, Jabil 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 Jabil will offset losses from the drop in Jabil's long position.| USWE SPORTS vs. SCANSOURCE | USWE SPORTS vs. Uber Technologies | USWE SPORTS vs. GALENA MINING LTD | USWE SPORTS vs. Playtech plc |
| Jabil vs. SOLSTAD OFFSHORE NK | Jabil vs. CSSC Offshore Marine | Jabil vs. Clearside Biomedical | Jabil vs. TITANIUM TRANSPORTGROUP |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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