Correlation Between Innoviz Technologies and Jabil Circuit
Can any of the company-specific risk be diversified away by investing in both Innoviz Technologies 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 Innoviz Technologies and Jabil Circuit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innoviz Technologies and Jabil Circuit, you can compare the effects of market volatilities on Innoviz Technologies 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 Innoviz Technologies with a short position of Jabil Circuit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innoviz Technologies and Jabil Circuit.
Diversification Opportunities for Innoviz Technologies and Jabil Circuit
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Innoviz and Jabil is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Innoviz Technologies and Jabil Circuit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jabil Circuit and Innoviz 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 Innoviz Technologies 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 Innoviz Technologies i.e., Innoviz Technologies and Jabil Circuit go up and down completely randomly.
Pair Corralation between Innoviz Technologies and Jabil Circuit
Assuming the 90 days horizon Innoviz Technologies is expected to generate 14.41 times more return on investment than Jabil Circuit. However, Innoviz Technologies is 14.41 times more volatile than Jabil Circuit. It trades about 0.15 of its potential returns per unit of risk. Jabil Circuit is currently generating about 0.21 per unit of risk. If you would invest 7.00 in Innoviz Technologies on August 31, 2024 and sell it today you would earn a total of 2.55 from holding Innoviz Technologies or generate 36.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Innoviz Technologies vs. Jabil Circuit
Performance |
| Timeline |
| Innoviz Technologies |
| Jabil Circuit |
Innoviz Technologies and Jabil Circuit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innoviz Technologies and Jabil Circuit
The main advantage of trading using opposite Innoviz Technologies and Jabil Circuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innoviz Technologies 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.| Innoviz Technologies vs. Aeva Technologies, WT | Innoviz Technologies vs. Innoviz Technologies | Innoviz Technologies vs. EVgo Equity Warrants | Innoviz Technologies vs. HUMANA INC |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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