Correlation Between Jacobs Solutions and Freightos Limited
Can any of the company-specific risk be diversified away by investing in both Jacobs Solutions and Freightos Limited 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 Freightos Limited into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jacobs Solutions and Freightos Limited Warrants, you can compare the effects of market volatilities on Jacobs Solutions and Freightos Limited 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 Freightos Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacobs Solutions and Freightos Limited.
Diversification Opportunities for Jacobs Solutions and Freightos Limited
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jacobs and Freightos is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Jacobs Solutions and Freightos Limited Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freightos Limited 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 Freightos Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freightos Limited has no effect on the direction of Jacobs Solutions i.e., Jacobs Solutions and Freightos Limited go up and down completely randomly.
Pair Corralation between Jacobs Solutions and Freightos Limited
Taking into account the 90-day investment horizon Jacobs Solutions is expected to under-perform the Freightos Limited. But the stock apears to be less risky and, when comparing its historical volatility, Jacobs Solutions is 8.66 times less risky than Freightos Limited. The stock trades about -0.02 of its potential returns per unit of risk. The Freightos Limited Warrants is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 6.50 in Freightos Limited Warrants on August 27, 2024 and sell it today you would earn a total of 8.50 from holding Freightos Limited Warrants or generate 130.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 61.9% |
| Values | Daily Returns |
Jacobs Solutions vs. Freightos Limited Warrants
Performance |
| Timeline |
| Jacobs Solutions |
| Freightos Limited |
Jacobs Solutions and Freightos Limited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacobs Solutions and Freightos Limited
The main advantage of trading using opposite Jacobs Solutions and Freightos Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacobs Solutions position performs unexpectedly, Freightos Limited 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 Freightos Limited will offset losses from the drop in Freightos Limited's long position.| Jacobs Solutions vs. Innovate Corp | Jacobs Solutions vs. Energy Services | Jacobs Solutions vs. Api Group Corp | Jacobs Solutions vs. Topbuild Corp |
| Freightos Limited vs. NH Foods Ltd | Freightos Limited vs. Albertsons Companies | Freightos Limited vs. JBG SMITH Properties | Freightos Limited vs. SunOpta |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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