Correlation Between Jacobs Solutions and Ardagh Group
Can any of the company-specific risk be diversified away by investing in both Jacobs Solutions and Ardagh Group 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 Jacobs Solutions and Ardagh Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jacobs Solutions and Ardagh Group SA, you can compare the effects of market volatilities on Jacobs Solutions and Ardagh Group 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 Jacobs Solutions with a short position of Ardagh Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacobs Solutions and Ardagh Group.
Diversification Opportunities for Jacobs Solutions and Ardagh Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jacobs and Ardagh is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jacobs Solutions and Ardagh Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ardagh Group SA and Jacobs Solutions 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 Jacobs Solutions are associated (or correlated) with Ardagh Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ardagh Group SA has no effect on the direction of Jacobs Solutions i.e., Jacobs Solutions and Ardagh Group go up and down completely randomly.
Pair Corralation between Jacobs Solutions and Ardagh Group
If you would invest 11,250 in Jacobs Solutions on September 12, 2024 and sell it today you would earn a total of 2,358 from holding Jacobs Solutions or generate 20.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Jacobs Solutions vs. Ardagh Group SA
Performance |
| Timeline |
| Jacobs Solutions |
| Ardagh Group SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jacobs Solutions and Ardagh Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacobs Solutions and Ardagh Group
The main advantage of trading using opposite Jacobs Solutions and Ardagh Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacobs Solutions position performs unexpectedly, Ardagh Group 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 Ardagh Group will offset losses from the drop in Ardagh Group's long position.| Jacobs Solutions vs. KBR Inc | Jacobs Solutions vs. Tetra Tech | Jacobs Solutions vs. Fluor | Jacobs Solutions vs. Topbuild Corp |
| Ardagh Group vs. Jacobs Solutions | Ardagh Group vs. HNI Corp | Ardagh Group vs. Sphere Entertainment Co | Ardagh Group vs. Mativ Holdings |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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