Correlation Between Jacobs Solutions and China Eastern
Can any of the company-specific risk be diversified away by investing in both Jacobs Solutions and China Eastern 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 China Eastern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jacobs Solutions and China Eastern Airlines, you can compare the effects of market volatilities on Jacobs Solutions and China Eastern 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 China Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacobs Solutions and China Eastern.
Diversification Opportunities for Jacobs Solutions and China Eastern
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jacobs and China is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Jacobs Solutions and China Eastern Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Eastern Airlines 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 China Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Eastern Airlines has no effect on the direction of Jacobs Solutions i.e., Jacobs Solutions and China Eastern go up and down completely randomly.
Pair Corralation between Jacobs Solutions and China Eastern
If you would invest 11,523 in Jacobs Solutions on September 2, 2024 and sell it today you would earn a total of 2,600 from holding Jacobs Solutions or generate 22.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Jacobs Solutions vs. China Eastern Airlines
Performance |
| Timeline |
| Jacobs Solutions |
| China Eastern Airlines |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jacobs Solutions and China Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacobs Solutions and China Eastern
The main advantage of trading using opposite Jacobs Solutions and China Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacobs Solutions position performs unexpectedly, China Eastern 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 China Eastern will offset losses from the drop in China Eastern's long position.| Jacobs Solutions vs. KBR Inc | Jacobs Solutions vs. Tetra Tech | Jacobs Solutions vs. Fluor | Jacobs Solutions vs. Topbuild Corp |
| China Eastern vs. Monster Beverage Corp | China Eastern vs. Willamette Valley Vineyards | China Eastern vs. SNDL Inc | China Eastern vs. Addus HomeCare |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |