Correlation Between Consilium Acquisition and Jabil Circuit
Can any of the company-specific risk be diversified away by investing in both Consilium Acquisition and Jabil Circuit 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 Consilium Acquisition and Jabil Circuit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Consilium Acquisition I and Jabil Circuit, you can compare the effects of market volatilities on Consilium Acquisition and Jabil Circuit 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 Consilium Acquisition with a short position of Jabil Circuit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consilium Acquisition and Jabil Circuit.
Diversification Opportunities for Consilium Acquisition and Jabil Circuit
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Consilium and Jabil is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Consilium Acquisition I and Jabil Circuit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jabil Circuit and Consilium Acquisition 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 Consilium Acquisition I are associated (or correlated) with Jabil Circuit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jabil Circuit has no effect on the direction of Consilium Acquisition i.e., Consilium Acquisition and Jabil Circuit go up and down completely randomly.
Pair Corralation between Consilium Acquisition and Jabil Circuit
Assuming the 90 days horizon Consilium Acquisition I is expected to under-perform the Jabil Circuit. In addition to that, Consilium Acquisition is 3.7 times more volatile than Jabil Circuit. It trades about -0.12 of its total potential returns per unit of risk. Jabil Circuit is currently generating about 0.5 per unit of volatility. If you would invest 14,777 in Jabil Circuit on October 25, 2024 and sell it today you would earn a total of 2,120 from holding Jabil Circuit or generate 14.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Consilium Acquisition I vs. Jabil Circuit
Performance |
| Timeline |
| Consilium Acquisition |
| Jabil Circuit |
Consilium Acquisition and Jabil Circuit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Consilium Acquisition and Jabil Circuit
The main advantage of trading using opposite Consilium Acquisition and Jabil Circuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Consilium Acquisition position performs unexpectedly, Jabil Circuit 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 Circuit will offset losses from the drop in Jabil Circuit's long position.| Consilium Acquisition vs. CF Industries Holdings | Consilium Acquisition vs. Mangazeya Mining | Consilium Acquisition vs. Air Products and | Consilium Acquisition vs. Luxfer Holdings PLC |
| Jabil Circuit vs. Sanmina | Jabil Circuit vs. Celestica | Jabil Circuit vs. Plexus Corp | Jabil Circuit vs. Fabrinet |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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