Correlation Between Jacobs Solutions and ConnectM Technology
Can any of the company-specific risk be diversified away by investing in both Jacobs Solutions and ConnectM Technology 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 ConnectM Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jacobs Solutions and ConnectM Technology Solutions,, you can compare the effects of market volatilities on Jacobs Solutions and ConnectM Technology 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 ConnectM Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacobs Solutions and ConnectM Technology.
Diversification Opportunities for Jacobs Solutions and ConnectM Technology
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jacobs and ConnectM is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Jacobs Solutions and ConnectM Technology Solutions, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ConnectM Technology 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 ConnectM Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ConnectM Technology has no effect on the direction of Jacobs Solutions i.e., Jacobs Solutions and ConnectM Technology go up and down completely randomly.
Pair Corralation between Jacobs Solutions and ConnectM Technology
Taking into account the 90-day investment horizon Jacobs Solutions is expected to under-perform the ConnectM Technology. But the stock apears to be less risky and, when comparing its historical volatility, Jacobs Solutions is 14.59 times less risky than ConnectM Technology. The stock trades about -0.14 of its potential returns per unit of risk. The ConnectM Technology Solutions, is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 83.00 in ConnectM Technology Solutions, on October 9, 2024 and sell it today you would earn a total of 35.00 from holding ConnectM Technology Solutions, or generate 42.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacobs Solutions vs. ConnectM Technology Solutions,
Performance |
| Timeline |
| Jacobs Solutions |
| ConnectM Technology |
Jacobs Solutions and ConnectM Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacobs Solutions and ConnectM Technology
The main advantage of trading using opposite Jacobs Solutions and ConnectM Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacobs Solutions position performs unexpectedly, ConnectM Technology 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 ConnectM Technology will offset losses from the drop in ConnectM Technology's long position.| Jacobs Solutions vs. KBR Inc | Jacobs Solutions vs. Tetra Tech | Jacobs Solutions vs. Fluor | Jacobs Solutions vs. Topbuild Corp |
| ConnectM Technology vs. Rave Restaurant Group | ConnectM Technology vs. Global Net Lease | ConnectM Technology vs. GEN Restaurant Group, | ConnectM Technology vs. Dennys Corp |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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