Correlation Between CSSC Offshore and Jabil
Can any of the company-specific risk be diversified away by investing in both CSSC Offshore 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 CSSC Offshore and Jabil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSSC Offshore Marine and Jabil Inc, you can compare the effects of market volatilities on CSSC Offshore 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 CSSC Offshore with a short position of Jabil. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and Jabil.
Diversification Opportunities for CSSC Offshore and Jabil
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CSSC and Jabil is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and Jabil Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jabil Inc and CSSC Offshore 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 CSSC Offshore Marine 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 CSSC Offshore i.e., CSSC Offshore and Jabil go up and down completely randomly.
Pair Corralation between CSSC Offshore and Jabil
Assuming the 90 days trading horizon CSSC Offshore Marine is expected to under-perform the Jabil. In addition to that, CSSC Offshore is 1.75 times more volatile than Jabil Inc. It trades about -0.18 of its total potential returns per unit of risk. Jabil Inc is currently generating about -0.01 per unit of volatility. If you would invest 12,672 in Jabil Inc on September 12, 2024 and sell it today you would lose (57.00) from holding Jabil Inc or give up 0.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSSC Offshore Marine vs. Jabil Inc
Performance |
| Timeline |
| CSSC Offshore Marine |
| Jabil Inc |
CSSC Offshore and Jabil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and Jabil
The main advantage of trading using opposite CSSC Offshore and Jabil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore 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.| CSSC Offshore vs. Apple Inc | CSSC Offshore vs. Apple Inc | CSSC Offshore vs. Apple Inc | CSSC Offshore vs. Apple Inc |
| Jabil vs. Benchmark Electronics | Jabil vs. Meiko Electronics Co | Jabil vs. Superior Plus Corp | Jabil vs. SIVERS SEMICONDUCTORS AB |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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