Correlation Between DAX Index and JABIL CIRCUIT
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By analyzing existing cross correlation between DAX Index and JABIL CIRCUIT, you can compare the effects of market volatilities on DAX Index 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 DAX Index with a short position of JABIL CIRCUIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and JABIL CIRCUIT.
Diversification Opportunities for DAX Index and JABIL CIRCUIT
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and JABIL is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and JABIL CIRCUIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JABIL CIRCUIT and DAX Index 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 DAX Index 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 DAX Index i.e., DAX Index and JABIL CIRCUIT go up and down completely randomly.
Pair Corralation between DAX Index and JABIL CIRCUIT
Assuming the 90 days trading horizon DAX Index is expected to generate 2.36 times less return on investment than JABIL CIRCUIT. But when comparing it to its historical volatility, DAX Index is 2.86 times less risky than JABIL CIRCUIT. It trades about 0.08 of its potential returns per unit of risk. JABIL CIRCUIT is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 6,764 in JABIL CIRCUIT on September 3, 2024 and sell it today you would earn a total of 5,811 from holding JABIL CIRCUIT or generate 85.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. JABIL CIRCUIT
Performance |
| Timeline |
DAX Index and JABIL CIRCUIT Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
JABIL CIRCUIT
Pair trading matchups for JABIL CIRCUIT
Pair Trading with DAX Index and JABIL CIRCUIT
The main advantage of trading using opposite DAX Index and JABIL CIRCUIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index 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.| DAX Index vs. SPORT LISBOA E | DAX Index vs. FUYO GENERAL LEASE | DAX Index vs. Live Nation Entertainment | DAX Index vs. Transport International Holdings |
| JABIL CIRCUIT vs. CARSALESCOM | JABIL CIRCUIT vs. ELMOS SEMICONDUCTOR | JABIL CIRCUIT vs. YATRA ONLINE DL 0001 | JABIL CIRCUIT vs. JAPAN AIRLINES |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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