Correlation Between ORMAT TECHNOLOGIES and Jabil
Can any of the company-specific risk be diversified away by investing in both ORMAT TECHNOLOGIES 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 ORMAT TECHNOLOGIES and Jabil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ORMAT TECHNOLOGIES and Jabil Inc, you can compare the effects of market volatilities on ORMAT TECHNOLOGIES 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 ORMAT TECHNOLOGIES with a short position of Jabil. Check out your portfolio center. Please also check ongoing floating volatility patterns of ORMAT TECHNOLOGIES and Jabil.
Diversification Opportunities for ORMAT TECHNOLOGIES and Jabil
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ORMAT and Jabil is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding ORMAT TECHNOLOGIES and Jabil Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jabil Inc and ORMAT TECHNOLOGIES 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 ORMAT TECHNOLOGIES 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 ORMAT TECHNOLOGIES i.e., ORMAT TECHNOLOGIES and Jabil go up and down completely randomly.
Pair Corralation between ORMAT TECHNOLOGIES and Jabil
Assuming the 90 days trading horizon ORMAT TECHNOLOGIES is expected to generate 2.22 times less return on investment than Jabil. But when comparing it to its historical volatility, ORMAT TECHNOLOGIES is 1.45 times less risky than Jabil. It trades about 0.16 of its potential returns per unit of risk. Jabil Inc is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 11,233 in Jabil Inc on September 1, 2024 and sell it today you would earn a total of 1,447 from holding Jabil Inc or generate 12.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
ORMAT TECHNOLOGIES vs. Jabil Inc
Performance |
| Timeline |
| ORMAT TECHNOLOGIES |
| Jabil Inc |
ORMAT TECHNOLOGIES and Jabil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ORMAT TECHNOLOGIES and Jabil
The main advantage of trading using opposite ORMAT TECHNOLOGIES and Jabil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ORMAT TECHNOLOGIES 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.| ORMAT TECHNOLOGIES vs. SIVERS SEMICONDUCTORS AB | ORMAT TECHNOLOGIES vs. Darden Restaurants | ORMAT TECHNOLOGIES vs. Reliance Steel Aluminum | ORMAT TECHNOLOGIES vs. Q2M Managementberatung AG |
| Jabil vs. ORMAT TECHNOLOGIES | Jabil vs. Playtech plc | Jabil vs. THORNEY TECHS LTD | Jabil vs. NetSol Technologies |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Transaction History View history of all your transactions and understand their impact on performance |