Correlation Between Jacobs Solutions and Accretion Acquisition
Can any of the company-specific risk be diversified away by investing in both Jacobs Solutions and Accretion Acquisition 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 Accretion Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jacobs Solutions and Accretion Acquisition Corp, you can compare the effects of market volatilities on Jacobs Solutions and Accretion Acquisition 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 Accretion Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacobs Solutions and Accretion Acquisition.
Diversification Opportunities for Jacobs Solutions and Accretion Acquisition
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jacobs and Accretion is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Jacobs Solutions and Accretion Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accretion Acquisition 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 Accretion Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accretion Acquisition has no effect on the direction of Jacobs Solutions i.e., Jacobs Solutions and Accretion Acquisition go up and down completely randomly.
Pair Corralation between Jacobs Solutions and Accretion Acquisition
If you would invest 1,055 in Accretion Acquisition Corp on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Accretion Acquisition Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Jacobs Solutions vs. Accretion Acquisition Corp
Performance |
| Timeline |
| Jacobs Solutions |
| Accretion Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jacobs Solutions and Accretion Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacobs Solutions and Accretion Acquisition
The main advantage of trading using opposite Jacobs Solutions and Accretion Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacobs Solutions position performs unexpectedly, Accretion Acquisition 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 Accretion Acquisition will offset losses from the drop in Accretion Acquisition's long position.| Jacobs Solutions vs. KBR Inc | Jacobs Solutions vs. Tetra Tech | Jacobs Solutions vs. Fluor | Jacobs Solutions vs. Topbuild Corp |
| Accretion Acquisition vs. WT Offshore | Accretion Acquisition vs. WPP PLC ADR | Accretion Acquisition vs. Jutal Offshore Oil | Accretion Acquisition vs. Arrow Electronics |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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